PARIS (Reuters) – The slowdown in French manufacturing activity worsened in June, the final HCOB PMI for the sector compiled by S&P Global showed on Monday, as domestic demand for consumer goods deteriorated and cost pressures increased.
The final reading of the indicator for June fell to 45.4, compared to 46.4 in May and 45.3 given by the preliminary survey.
A sharp contraction in new orders weighed on production volumes and purchases, S&P said in its monthly survey. At the same time, producer prices rose at the fastest pace in 15 months, supported by rising costs.
“Business confidence fell below its historical average, reinforcing the negative picture painted by forward-looking indices of input purchases and new orders,” said Norman Liebke, an economist at Hamburg Commercial Bank.
Last month, S&P reported weak signals suggesting a recovery, as manufacturing sentiment improved slightly.
(Report by Tassilo Hummel, by Corentin Chappron, edited by Sophie Louet)
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