French September manufacturing growth weakens a tad more than forecast -PMI

FILE PHOTO: People attend the inauguration of
FILE PHOTO: People attend the inauguration of the "Made in France" exhibition at the Elysee Palace in Paris, France July 2, 2021. Ludovic Marin/Pool via REUTERS/File Photo

October 1, 2021

PARIS (Reuters) – Growth in French manufacturing activity weakened a tad more than initially forecast in September, a survey showed on Friday, as problems over supplies of goods weighed on the sector.

Data compiler IHS Markit said its final purchasing managers’ index (PMI) for the French manufacturing sector in September fell to 55.0 points from 57.5 in August.

The index remained above the 50-point line dividing an expansion in activity from a contraction, but the final number for September was a bit weaker than the 55.2 points figure given in an initial, flash forecast.

Problems with global shipping and transport, caused partly by strict COVID-19 checks at Chinese ports and other disruptions to global supply chains during the pandemic, have resulted in many of the world’s companies not getting key supplies of goods on time.

Earlier this month, consulting firm AlixPartners said global automakers could lose $210 billion in revenue this year because of supply chain disruptions, such as shortages of semiconductors.

“September survey data show us that the intense supply-side imbalances are now starting to seriously impede the French manufacturing sector and are even affecting the demand-side of the economy too,” said IHS Markit senior economist Joe Hayes.

“It’s clear that manufacturing growth is easing, with little signs that the situation is going to improve in the immediate future,” added Hayes.

(Reporting by Sudip Kar-Gupta; Editing by Susan Fenton)