In its monthly snapshot of activity in the
long-struggling sector, data compiler Markit said its final
purchasing managers' index fell to 48.2 in June from 49.6 in
That was slightly higher than a preliminary reading of 47.8 but
still short of the 50-point line dividing expansions in activity
Weakening demand from clients both at home and abroad, including
China, contracting operating margins and a return to falling
output volumes contributed to what Markit said was the "steepest
pace of manufacturing job shedding" since the end of 2013.
"France's manufacturing sector is back in reverse gear and
weakness looks set to persist through the summer," said Markit
senior economist Tim Moore.
Purchasing managers surveyed by Markit said they were concerned
about the outlook for client spending and noted the higher cost
of raw materials, especially metals.
The weak performance by the manufacturing sector in France adds
to pressure on President Francois Hollande as he tries to revive
the economy and create jobs by tying tax breaks for businesses
to new targets for hiring and investing.
(Reporting by Alexandria Sage; Editing by Hugh Lawson)
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