Key facts
- France's manufacturing PMI rose to 51.2 in June from 49.7 in May.
- The final June PMI figure of 51.2 was stronger than the flash reading of 50.7.
- French manufacturers saw higher volumes of outstanding work and an increase in backlogs of work.
- Supply chain pressures, particularly poor transport availability, continued to weigh on the French manufacturing sector.
- PMI price indices in France decreased from May levels, potentially signaling lower inflation.
France's manufacturing sector showed a slight acceleration in growth in June, with the Purchasing Managers' Index (PMI) rising to 51.2, surpassing the initial forecast of 50.7. This return to growth, after falling below the 50-point contraction threshold from April to May, indicates resilience despite ongoing supply-chain pressures exacerbated by transport disruptions linked to the Iran war. Manufacturers reported an increase in outstanding work and backlogs. While price indices have eased, suggesting potential for lower inflation, supply chain issues and transport availability continue to be significant challenges. In contrast, neighboring Italy's manufacturing PMI dipped to 52.2 but remained in expansion territory, with easing cost pressures. Spain's factory activity contracted to 49.7, and Turkey's manufacturing sector shrank further with a PMI of 47.1 in June.