PARIS, Sept 3 - Following is the full text of the French CDAF/ Purchasing Managers' Index (PMI) for August provided by NTC Research, which compiles the index.
CDAF/ PURCHASERS' INDEX:
The seasonally adjusted CDAF/ Purchasing Managers' Index (PMI) remained below the critical no-change level of 50.0 in August, to signal a fifth consecutive monthly contraction of the French manufacturing economy. The latest fall in manufacturing activity was again the result of falling levels of output, orders and employment, as well as improving delivery times and continued falls in stocks of purchases. At 48.3, the PMI pointed to a similar rate of manufacturing contraction to that seen one month ago.
NEW ORDERS, PURCHASING AND OUTPUT:
Seasonally adjusted manufacturing output fell for the fourth month running in August, although the overall rate of decline was again only marginal. The latest slight fall in output largely reflected the continued general weakness of demand, along with efforts by a number of firms to run down inventories in order to cut costs. Measured overall, manufacturing order books weakened for the fifth month running in August, with falling sales widely blamed on the weakness of both internal and external demand. Although falling foreign sales were generally attributed to the recent slowdown in the global economy, a number of firms reported that their export sales had been hit in August by the recent strengthening of the euro - in particular against the U.S. dollar.
In line with lower production requirements and fewer incoming new orders, manufacturers reduced the quantity of raw materials they purchased for the fifth consecutive month in August. In addition, the rate of decline of purchasing activity increased compared to the previous month.