💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

French manufacturing shrinks at fastest rate in 15 months in Aug - PMI

Published 01/09/2014, 09:02
Updated 01/09/2014, 09:10
© Reuters French Prime Minister Manuel Valls attends a news conference at the Hotel Matignon offices in Paris

PARIS (Reuters) - French manufacturing activity shrank at the fastest pace in 15 months in August as new orders, employment and stocks of purchases all contracted more sharply, a survey showed on Monday.

Data compiler Markit said its final purchasing managers' index for the sector fell to 46.9 in August from 47.8 in July. That was slightly higher than a preliminary reading of 46.5 but left the index well below the 50-point line dividing expansions in activity from contractions.

"Sharply falling output led firms to cut back employment, purchasing and stock levels further in August," said Markit economist Jack Kennedy.

"This sort of across-the-board weakness has been a common theme in recent months and there remains very little to suggest any turnaround in fortunes will be imminent."

The weakness in the manufacturing sector adds to pressure on President Francois Hollande as he tries to revive an economy mired in stagnation and fight rampant unemployment.

© Reuters. French Prime Minister Manuel Valls attends a news conference at the Hotel Matignon offices in Paris

The preliminary PMI reading for August had shown that business activity was stagnant overall in France, with an improvement in the services sector not robust enough to fully offset the manufacturing sector's woes.

(Reporting by Ingrid Melander; Editing by Hugh Lawson)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.