French Manufacturing Contracts for First Time Since November, S&P Global PMI Shows
Overview of French Manufacturing Sector Performance
By Sudip Kar-Gupta
Recent Contraction in Manufacturing Activity
PARIS, June 1 (Reuters) - France's manufacturing sector contracted in May for the first time since November, as the spike in energy prices and transport disruptions resulting from the Iran conflict impacted businesses, a survey by S&P Global showed on Monday.
PMI Figures and Analysis
The S&P Global France Manufacturing final Purchasing Managers' Index (PMI) fell to 49.7 points in May from 52.8 in April, albeit coming above a flash April manufacturing PMI figure of 48.9 points.
Understanding PMI Thresholds
Any number below 50 shows a contraction in activity, while above 50 shows expansion.
The final April manufacturing PMI figure of 49.7 points was its lowest since November and also the first time it had fallen below the 50-point level since November.
Expert Commentary on Market Conditions
"Supply chains are still adjusting to the volatility induced by the war in the Middle East and ensuing energy-price shock," said Joe Hayes, principal economist at S&P Global Market Intelligence.
"For example, more French manufacturers experienced delivery issues and input price rises than in April – pressures that could play out as higher goods prices and supply issues across the economy more broadly over the coming months," he added.
Reporting and Editorial Credits
(Reporting by Sudip Kar-Gupta; Editing by Toby Chopra)
