French manufacturing expands at slower pace in September, PMI shows

French Manufacturing Growth Slows in September as New Orders Drop, PMI Reveals

Overview of France's Manufacturing Sector in September

PMI Data and Sector Performance

Oct 1 (Reuters) - France's manufacturing sector expanded for a second straight month in September, although the pace of growth slowed as new orders fell, a business survey showed on Thursday.

S&P Global France Manufacturing PMI Figures

• The S&P Global France Manufacturing Purchasing Managers' Index (PMI) fell to 50.6 points in September from 51.1 in August, said the S&P Global survey.

Understanding the PMI Threshold

• Any figure above 50 points marks an expansion in activity, while below 50 shows a contraction. 

• That final September manufacturing PMI was nevertheless stronger than the flash manufacturing PMI figure of 50.3 points.

Key Factors Impacting Manufacturing

Production, Orders, and Inflation

• S&P Global said there had been an increase in factory production, although new orders had fallen for the fifth successive month.

• It added that inflationary pressures remained a concern.

• Data published this week showed that French consumer prices had risen by more than expected, with the headline inflation figure standing at 3.4%.  

Expert Commentary

• "Against a backdrop of rising inflation, an intensification of the energy market crisis and a tightening of financial conditions, France's manufacturing sector managed to grow in September," said Joe Hayes, senior principal economist at S&P Global Market Intelligence. 

• "It points to a striking degree of resilience, although falling new orders, inventory pullbacks and weak expectations raise questions about the durability of this expansion," he added.

Reporting Credits

(Reporting by Sudip Kar-Gupta; Editing by Toby Chopra)