Thursday, BNP Paribas said in a report that although French manufacturing production is on the rise, a more consistent recovery in the order books of manufacturers will be necessary to sustain manufacturing activity.
The French statistical office INSEE had announced earlier in the day that the manufacturers' sentiment indicator stood at 89 in October, up from 86 in the previous month. Past production in the manufacturing sector was on the rise, with the corresponding index at minus 11 compared to minus 16 in the previous month. New orders increased in October to minus 55 from minus 59, on the back of improving foreign orders but still remained too low to trigger a sustained recovery in activity, BNP Paribas said.
The firm forecasts further growth in manufacturing production in the coming months but pointed out that beyond this "technical rebound", a greater inflow of new orders will be needed to sustain manufacturing activity.
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