PARIS (Reuters – France’s supply chain problems hit the manufacturing sector in October. The slowdown in growth was broadly consistent with initial projections, a monthly survey revealed on Tuesday.

IHS Markit data compiler said the final purchasing managers index for French manufacture in October dropped to 53.6 points, from 55.0 last September. That’s up from a flash estimate of 53.5.

While the index did not cross the 50-point mark that separates contractions from expansions in activity, Joe Hayes, senior economist at IHS Markit, said the supply chain problem could have a continuing impact on the sector.

IHS Markit said that France’s manufacturing output was down for the first time since January due to shortages of key goods. This is partly due to strict COVID-19 control, which has affected ports.

Hayes said that because firms can not secure inputs to produce their products orders are also declining as clients experience long delays in placing orders or cannot get the components they need to convert semi-finished goods into final goods.

“It is difficult to envision the situation improving anytime soon. Businesses need to manage their inventory carefully if they want to continue production,” he said.