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– French manufacturing companies are “pessimistic” about an increase in their activity in 2025.
French manufacturing production suffered its biggest decline in December since May 2020, due to a further drop in the overall volume of orders, according to the PMI index published Thursday by the S&P Global agency and the Hamburg Commercial Bank (HCOB) . The buyers index for the manufacturing industry was established at 41.9 in Decembercompared to 43.1 in November. An index below 50 signals contraction.
“Production posted its sharpest decline since May 2020 due to a further marked drop in the overall volume of new orders”particularly in the automotive and construction sectors, details the press release. “Weak demand had an impact on inventory levels, which fell in December”.
“France will fall back into factory destruction,” predicts Olivier Lluansi
A “sluggish demand on international markets”
The job has “decreased again, with workforce numbers falling at a significantly greater rate than in November, while manufacturers reduced their selling prices in order to boost sales”he adds. The decline in production “mainly reflects an unfavorable demand environment”indicate S&P Global and HCOB. And the decline in overall volume new orders also reflects “the sluggishness of demand on international markets”since export sales declined in December, following “the trend recorded for almost three years”.
French manufacturing companies “said themselves to be pessimistic” as for an increase in their activity in the next twelve months: “the fear of a prolonged decline in demand, the current climate of political uncertainty and the weakness of investment spending by customers have, according to respondents, weighed on the level of confidence”underlines the press release.
