Eurozone’s second biggest economy record’s spectacular manufacturing growth

This record breaking level of manufacturing activity can be attributed to sound economic policies undertaken by French policymakers which are now acting as the foundation for this spectacular economic growth.

On Friday, as per the results of a survey, French factories have performed their best quarter since 2000, as they have churned out goods at a record pace.

The data, compiled by IHS Markit, shows that the final purchasing managers’ index rose to 57.7% in November from its previous month of 56.1 in October, beating a flash reading of 57.5 and pulling further away from the 50-point line dividing expansions in activity from contractions.

“The latest data continued to paint a positive picture of the French manufacturing sector, with output, new orders and employment all expanding at marked and accelerated rates,” said Alex Gill, an economist at IHS Markit.

Gill went on to add, French manufacturing activity is set to keep this brisk pace for the remainder of 2017.

Manufacturing activity in France, the Eurozone’s second biggest economy, has enjoyed something of a renaissance since the begining of this year, after five years of near-stagnation.

Much of this growth can be linked to economic policies, including rock-bottom interest rates, tax credits designed to reduce manufacturers’ labour costs among others that have essentially laid the ground work for France to clock such record manufacturing activity.

In the third quarter the industrial output stood by 2.7% than in the same period last year.

IHS Markitt’s PMIs also signal that this neck breaking pace is set to continue to the fourth quarter as well.


Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Strategy

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