Input price inflation at 30-month high in January while demand fell further
"It was not an encouraging start to the year for Greek manufacturers. As input price inflation reached a 30-month high, firms were forced to stop cutting their tariffs – a bad sign for a country facing significant competitiveness problems and very weak domestic demand. If this upward trend in price pressures continues, it could stall any near-term recovery in export orders – which is currently the brightest light on the horizon" says Gemma Wallace, Economist at Markit and author of the Greece Manufacturing PMI.
France, not at its best?
French manufacturing output growth cooled at the start of 2011
"January’s sharp deceleration in new order growth made for a shaky start to 2011 for the French manufacturing sector. Although output continued to rise at a robust pace, employment growth slowed to near-stagnation, indicating that firms remain cautious. Price pressures meanwhile continued to grow, driven by rising global commodity costs and forcing manufacturers to raise their output prices at a survey-record rate. This is hardly likely to boost sales in coming months. Indeed, with inflation and unemployment concerns weighing on the French consumer at a time of uncertainty in many key export markets, it could be a tricky year for manufacturers" says Jack Kennedy, Senior Economist at Markit and author of the France Manufacturing PMI.
"January’s sharp deceleration in new order growth made for a shaky start to 2011 for the French manufacturing sector. Although output continued to rise at a robust pace, employment growth slowed to near-stagnation, indicating that firms remain cautious. Price pressures meanwhile continued to grow, driven by rising global commodity costs and forcing manufacturers to raise their output prices at a survey-record rate. This is hardly likely to boost sales in coming months. Indeed, with inflation and unemployment concerns weighing on the French consumer at a time of uncertainty in many key export markets, it could be a tricky year for manufacturers" says Jack Kennedy, Senior Economist at Markit and author of the France Manufacturing PMI.
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