- Prior 44.5
It's a light change compared to the initial estimate but reaffirms further downside in French manufacturing activity on the month. New order suffered its steepest drop since the first wave of the Covid pandemic as demand conditions remain extremely subdued - both domestically and internationally. That's the main drag for the French industry sector but at least price pressures are seen easing with firms dropping output charges to compete in a suffering market. HCOB notes that:
"France's industrial sector remains in crisis mode. The HCOB Manufacturing PMI saw a further decline in November, returning to the level seen in January. The year 2024 has failed to meet expectations for a substantial recovery in the industry. Output continues to shrink, and French procurement managers are holding back on inventory purchases. Surveyed companies reported that they are trying to protect their cash flow by reducing inventories.
"French manufacturing was also hit by higher costs. Despite the deep crisis, input prices in the French industrial sector rose in November. Compounding the issue, output prices shrank due to competitive pressures, signalling margin erosion.
"The outlook remains bleak. National and international order intakes have shrunk significantly in November. Output expectations for the next twelve months are also markedly downbeat. Surveyed companies attribute this to uncertainty, concerns over the automotive and construction industries, and subdued business conditions in export markets. Consequently, employment continued to decline. Manufacturers of capital and intermediate goods are the driving force behind the employment reduction, according to our data."
