FX.co ★ French Manufacturing PMI Declines in July, Hits New Low of 44.0

The French Manufacturing PMI (Purchasing Managers’ Index) continued its downward trajectory in July 2024, slipping from the previous month's reading of 45.4 to a new low of 44.0. The latest update, released on August 1, 2024, signals an intensifying contraction in the sector.

This dip marks a significant deterioration in the manufacturing landscape, reflecting weaker demand and ongoing supply chain disruptions. The PMI index, which provides a snapshot of the health of the manufacturing sector, indicates that the industry is grappling with sluggish production levels, declining new orders, and mounting cost pressures.

Economists are closely monitoring these developments, as a prolonged phase of contraction could have broader implications for the French economy. The recent data add to the growing concerns over the country’s economic resilience and highlight the urgent need for policy responses to stabilize the sector and restore growth.