French industry stuck in recession and outlook stays bleak, survey finds

  • November 4, 2024

PARIS (Reuters) - France's manufacturing sector remained stuck in decline in October as factory output fell at its fastest rate in nine months, dragged down by low new orders, particularly from international clients, a survey showed on Monday.

The HCOB France Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, came in at 44.5, slightly down from 44.6 in September. Readings below 50.0 indicate a contraction in activity.

"The French manufacturing sector remains mired in a deep crisis," said Dr Tariq Kamal Chaudhry, Economist at Hamburg Commercial Bank AG. "The outlook remains bleak, with no sign of an upward trend on the horizon."

A sub-index measuring factory output fell to 43.1, down from 44.0 last month and the worst reading since January when it stood at 41.0.

French industry stuck in recession and outlook stays bleak, survey finds

The downturn was exacerbated by a steep fall in export orders, which decreased at one of the fastest rates in the survey's history amid geopolitical tensions and a slowing global economy.

Domestic demand also weakened, with cautious consumer spending and a struggling construction sector cited as factors by polled company executives.