France’s manufacturing purchasing managers’ index
According to IHS Markit, France’s final manufacturing PMI (purchasing managers’ index) stood at 57.7 in November 2017, compared with 56.1 in October 2017. The preliminary market expectation was 57.5. Factory activity was at its highest in seven years.
Why manufacturing activity rose
France’s manufacturing PMI score rose due to the following reasons:
- production output increased
- export and new business orders rose
- employment improved
In November 2017, production output was at its highest level since April 2011, boosted by a rise in new business orders over the last 14 months. Moreover, IHS Markit suggests that client demand is robust.
The stronger global (ACWI) (VTI) demand is pushing export orders higher. For the last 13 months, employment levels have increased. In November 2017, jobs grew at the second-highest rate in 12 years. However, average lead time lengthened due to a strong need for input. Higher prices for raw materials such as steel, aluminum, and copper have increased input costs.
ETF performance in November
The iShares MSCI France ETF (EWQ), which follows France’s equity markets, fell 0.1% in November 2017. In comparison, the Vanguard FTSE Europe ETF (VGK), which follows Europe’s Euronext 100 (IEV) (EZU), (N100-INDEX) fell 0.1%. In the next part of this series, we’ll analyze UK manufacturing PMI data in November 2017.