France October final manufacturing PMI 47.2 vs 47.4 prelim | Forexlive

A slight revision lower but it just reaffirms a quicker deterioration in manufacturing conditions, with new factory orders slumping at its fastest rate since May 2020. Underlying demand conditions also worsened as economic uncertainty and inflation continue to affect the outlook heading into the final months of the year. S&P Global notes that:

“The October PMI survey provide further confirmation that France’s manufacturing sector is in recession. Gauges of output and new orders are bogged down in the kind of territory we’ve only previously seen during periods of high economic stress such as the pandemic, the eurozone sovereign debt crisis and the global financial downturn between 2008 and 2009.

“In response, we’re seeing more cautious business behaviour creep in. Stocks of purchases fell for the first time since March, with companies attributing this to cashflow preservation efforts. The volume of new inputs purchased slumped sharply in October as companies adjusted to the negative economic outlook.

“Although this has helped reduce the strain on suppliers, which should also extend to addressing the demandsupply imbalance which has caused inflation to soar, we’re still seeing historically elevated price pressures. Falling natural gas prices across Europe in recent weeks will be a relief to French manufacturers, as anecdotal evidence suggests that energy remains a principal driver of cost pressures at present.”