Courtesy of Mish.
As expected, economic news in France continues to worsen. The Markit France Manufacturing PMI final data French manufacturing sector operating conditions continue to deteriorate at marked pace.
Key points:
PMI remains indicative of sharp downturn despite rising to three-month high
Output, new orders and employment fall further
Prices charged cut at fastest rate since November 2009Summary:
Operating conditions in the French manufacturing sector continued to worsen in March. Although the headline Purchasing Managers’ Index ® inched up to a three-month high of 44.0, from 43.9 in February, it continued to signal a marked rate of deterioration.
The level of incoming new orders placed with manufacturers in France decreased further during March, extending the current period of contraction to 21 months. Moreover, the pace of decline accelerated slightly since February.
Reduced workloads prompted French manufacturers to cut staffing levels further in March. The rate of job shedding was solid, albeit the slowest in three months.
Prices charged by French manufacturers for finished goods fell for the third month running during March. Furthermore, the rate of decline accelerated to the sharpest since November 2009. A number of survey respondents commented that strong competitive pressures had weighed on their pricing power.
Comment:
Jack Kennedy, Senior Economist at Markit said: “A very slight improvement in the headline PMI figure does little to disguise an ongoing sharp deterioration in French manufacturing sector operating conditions during March. Increasingly aggressive output price discounting failed to prevent new orders dropping steeply remained deficient. Further marked falls in employment, purchasing and stocks also bear witness to a beleaguered industry struggling in the face of a darkening economic climate in France.”
Manufacturing vs. Production
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