The Eurozone's economic woes deepen as France, the region's second-largest economy, slides further into industrial recession. Despite heavy debt-financed stimulus programs, the French manufacturing sector's performance continues to deteriorate. According to preliminary data, the HCOB France Manufacturing PMI dropped to 44.1 in July 2024, far below market expectations of 45.8. This marks the 26th consecutive month of declining output and the sharpest contraction since January.
Weak sales and customer delays are the main culprits behind the downturn, leading to significant reductions in new orders and workforce numbers. Additionally, manufacturers are grappling with rising input price inflation.
The call for economic reform and rational policy-making is more urgent than ever to restore competitiveness and avert further decline.