French manufacturing activity hovers near six-year high in July: PMI

[PARIS] French manufacturing activity held close to a six-year high in July as political uncertainty dissipated after the presidential election, a survey showed on Tuesday.

Data compiler IHS Markit said its final purchasing managers'index (PMI) rose marginally to 54.9 from 54.8 in June, just shy of a six-year high reached in April.

Business and consumer confidence surveys soared in the run-up to Emmanuel Macron's election as president in May on a pro-business, reformist platform. They have since eased off their peaks but remain high.

The PMI reading for manufacturing was lower than a preliminary estimate of 55.4 but well above the 50-point line dividing expansions in activity from contractions.

Though growth in new orders eased slightly, manufacturers' optimism about future output hit a record high and they took on staff at the fastest pace in nearly 17 years.

"The upturn in business confidence has coincided with a rebound in economic conditions in the euro zone and, more recently, reduced political uncertainty following the conclusion to the French presidential and legislative elections, and looks set to support manufacturing growth in the coming months," IHS Markit economist Alex Gill said.

REUTERS