France manufacturing PMI contracts for 3rd straight month on subdued new orders

France’s May manufacturing purchasing managers’ index contracted for the third straight month as new orders fell amid slight slowdown in output. Although not as sharply as in April, French PMI fell as another round of price cuts failed to prop up sales, a survey showed on Wednesday.

France’s PMI index rose to 48.4 in May from 48.0 in April. That was slightly higher than a preliminary reading of 48.3 but remained below the 50-point line dividing expansions in activity from contractions, data released by Markit showed today.

"French manufacturers continued to face a difficult operating environment in May, with output and employment falling at sharper rates," said Jack Kennedy, Economist, Markit.

Further, new orders and export orders declined for the fifth consecutive month, while staffing levels fell for the third month in a row, although the rate of contraction eased in the latest survey period.

Meanwhile, employment in the French manufacturing sector continued to fall in May. Stocks of finished goods depleted at the sharpest rate since Nov 2015.