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FR: PMI Manufacturing Final
| Consensus | Consensus Range | Actual | Previous | |
| Index | 50.0 | 50.0 to 50.0 | 49.8 | 51.2 |
Highlights
The manufacturing sector slipped into contraction in July, with the PMI coming in at 49.8 compared to 51.2 in June, Economists had expected the final number to be 50.0, according to the median of an Econoday survey, which was what the preliminary reading was.
With volatility stemming from more tariff threats from the US and the conflict in the Middle East, it should come as no surprise that production and new orders declined in July. This is mainly due to the resumption of hostilities in July after a relative period of calm in June.
New orders slumped for a third consecutive month, with businesses citing higher energy costs, cautious clients and the war in the Middle East. That in turn pushed manufacturers to pull back on their production, although they were able to work through production backlogs.
Another upshot of the disruptions caused by the conflict are increased supplier delivery times, with shortages notable for electronics and chemical products.
Perhaps paradoxically, employers increased hiring in July, likely buoyed by expectations for increased production in the future.
Optimism among French manufacturers has proven to be resilient, although that continues to be tested by geopolitical events.
Market Consensus Before Announcement
The consensus looks for no revision in the final July report from the flash at 50.0, down from 51.2 in the June final.