France PMI Manufacturing was finalized at 58.0 in July, down from June’s 59.0. Markit said production growth remained strong, but slowed. Supplier performance continued to deteriorate substantially. Input prices rose at fastest rate since March 2011.
Joe Hayes, Senior Economist at IHS Markit, said: “Despite some strong supply-side challenges for goods producers, the France Manufacturing PMI survey showed strong growth in output during July. France has now enjoyed an unchecked period of production growth that began in February, but the survey raises a number of things to remain wary over…
“Firms are currently dealing with rapidly deteriorating supplier performance and intense input price inflation…. higher prices firms are paying to secure inputs is being passed on to output charges, which rose at a record rate…
“Firms don’t seem to have such a problem paying more for their inputs because demand is so strong and they can pass this through to their clients. These are the perfect conditions for rising consumer price inflation and could soon make uncomfortable viewing for policymakers.”
