HomeEconomyManufacturing activity contracts further in November

Manufacturing activity contracts further in November

The S&P Global/HCOB sector PMI stood at 42.9 last month from 42.8 in October, which was the lowest level since May 2020.

The private manufacturing sector in France contracted again in November, although at a slightly less marked pace than initially estimated, according to a survey published this Friday that shows that activity was affected by a drop in production and shipments.

The S&P Global/HCOB PMI Index Manufacturing sectorIn its final version, it stood at 42.9 last month compared to 42.8 in October, the lowest level since May 2020. A first estimate had placed it at 42.6.

Low demand

The threshold of 50 separates growth from contraction of activity.

“The French manufacturing sector continues to suffer from weak demand. High financing costs are hurting producers of goods, as is the sustained reduction in inventories. There are currently no signs to suggest that improvement is near,” commented Norman Liebke , economist at the Commercial Bank of Hamburg.

“As a result, our HCOB model (…) indicates a contraction of 0.7% in the manufacturing sector for the fourth quarter, with a drag coming in particular from the capital goods segment,” he added.

Author: OC with Reuters
Source: BFM TV

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