Little change to the initial estimate as French manufacturing activity slows to a seven-month low. Rising inflation pressures continue to impact new business while continued supply chain issues are presenting problems for production. S&P Global notes that:
"The French manufacturing sector is just about managing to stay in growth territory, but the current pace of expansion is sluggish amid a multitude of economic headwinds to the industry.
"A notable area of weakness was the investment goods sub-sector, with survey data signalling a sharp and accelerated decline in new orders at capital goods makers.
"These developments highlight the strong degree of uncertainty facing businesses at present, which is weighing on investment decisions as some companies adopt a wait-and-see approach in this current climate.
"As well as the war in Ukraine, steep inflationary pressures are curtailing client appetite. Overall manufacturing new order growth almost ground to a halt in May, while exports continued to drop.
"A small positive for the sector were the signs, albeit limited, of some parts of the supply chain stabilising. Improved availability of critical inputs could help businesses ride out a soft patch in demand as they rebuild their stocks."
