(Il Sole 24 Ore Radiocor) - Milano, 23 giu - In June, France's purchasing managers' index for the manufacturing sector fell to a four-month low of 47.8 from 49.8 in May, according to preliminary data released by S&P Global and Hamburg Commercial Bank.

A reading below 50 signals contracting sector activity, while one above an expansion.

The manufacturing output component of the index also fell to a four-month low, declining to 47.2 from 51.0 in May.

In the services sector, the index inched down to 48.7 from 49.8, a two-month low, while the composite output index, a weighted average of services PMI and manufacturing output, slipped to 48.5 from 49.3, also a two-month low.

'This is a little setback. Since the middle of the first quarter, the headline French HCOB PMI has risen significantly, which had sparked hopes for a recovery in the French private sector. This upward movement was particularly supported by the positive trend in the manufacturing sector.

That momentum has now come to a halt, as manufacturing suffered a setback in June, which is weighing on the overall development and dragging down the Composite PMI. The performance of the services sector is underwhelming, though it was broadly similar to the previous month, unlike the manufacturing sector," said Jonas Feldhusen, junior economist at Hamburg Commercial Bank.

'Overall, the question arises whether the decline in manufacturing output this month represents a mere temporary dip or already marks the end of the upward trend. The outlook is certainly clouded, as domestic demand for goods has weakened, as indicated by the decline in new orders. While the ECB's interest rate cuts, deregulation efforts at the EU level, and planned defence investments are likely to continue providing support to the manufacturing sector, uncertainties surrounding global trade and geopolitics - now further exacerbated by escalations in the Middle East - as well as global.

competition, are dampening the outlook."

(RADIOCOR) 23-06-25 09:44:05 (0168) 5 NNNN