French manufacturing activity weakened slightly in June but nevertheless beat a preliminary estimate, as a further loosening of COVID-19 restrictions boosted demand, a monthly survey showed on Thursday.
Data compiler IHS Markit said its final manufacturing Purchasing Managers’ Index edged down to 59.0 points last month from 59.4 in May.
That was higher than a flash estimate of 58.6 points and kept the index well above the 50-point line that divides an expansion in activity from a contraction.
May’s manufacturing PMI had shown activity expanding at the fastest rate in more than two decades, as companies struggled to work off backlogs built up during the pandemic.
“The recovery in France’s manufacturing sector continued at the end of the second quarter, with indicators relating to demand, employment and business confidence all portraying an encouraging growth story,” IHS Markit senior economist Joe Hayes said.
“With a further loosening of lockdown measures on the horizon as vaccination rates rise, the demand-side of the economy looks poised for lift-off.”
Source: Reuters (Reporting by Sudip Kar-Gupta; Editing by Catherine Evans)