German Manufacturing Up, France Slows: Surveys

German manufacturing activity increased in June, while France slowed, according to Purchasing Manager Index surveys by Markit Economics, released on Monday.



Germany Manufacturing PMI -- a single-figure snapshot of the performance of the manufacturing economy -- registered 51.8 in July, little changed from June's 51.9 and broadly in line with the long-run series average, the report said.



France registered 49.6, down from 50.7 in June.



German manufacturers reported a 27th successive monthly rise in production in July, with companies attributing much of the expansion to higher demand. New business increased, and consumer goods manufacturing saw a rise in demand.



German companies were encouraged to hire additional workers in July. The rate of job creation reached a three-month high, the report said.



German manufacturing output is important to Turkish exporters, noted Bora Tamer Yilmaz, an economist with Ziraat Securities in Istanbul. The production of intermediate goods for German products is one of the largest categories of Turkish exports, he pointed out.



In France, output decreased in July, following broadly no change one month previously. However, the rate of contraction was marginal, according to the report.



"Lower production reflected a further decrease in new orders. The rate of contraction in new work quickened since June, but was modest overall. Anecdotal evidence suggested that demand conditions remained generally subdued. New export orders fell for a second consecutive month, albeit marginally," the report said. - Ankara