France Industry Confidence Highest in Over 1½ Years

France’s manufacturing business climate indicator rose to 105 in January 2026 from 102 in December, above forecasts of 101 and remaining above its long-term average of 100 for a second month. This marked the highest reading since July 2022, as optimism strengthened for personal production prospects (17 vs 10 in December), while pessimism eased for general production prospects (-4 vs -6), and overall order books (-11 from -17). In contrast, views weakened for finished-goods inventories (8 vs 19), while foreign orders (-6), past production (7), and economic uncertainty (33) remained stable. Workforce balances also stayed mildly negative. By sector, confidence surged in “other manufacturing” and transport equipment, rose modestly in food and beverages, and slipped in machinery and equipment goods. Supply constraints persisted, with 18% citing sourcing issues, 14% workforce shortages, 24% supply-only, and 24% demand-only obstacles.

France’s manufacturing business climate indicator rose to 102 in December 2025 from 98 in November, moving back above its long-term average of 100 and marking the highest level since March 2024. Sentiment improved notably, with past production turning positive (8 vs -10 in November), personal production prospects remaining above average despite easing to 11 from 14, and foreign order books improving to -6 from -16. On the downside, overall order books remained weak at -17, while finished-goods inventories increased further (19 vs 17), pointing to persistent stock pressures. Workforce balances stayed mildly negative, with expected employment steady at -1, and economic uncertainty edged up to 33, the highest level this year. By sector, confidence rebounded strongly in transport equipment and improved modestly in machinery and equipment goods, while it fell sharply in food products and beverages and slipped slightly in other manufacturing, remaining below its long-term average.

France’s manufacturing business climate indicator fell to 98 in November 2025 from 101 in October, moving below expectations and its long-term average of 100. Pessimism notably worsened for overall order books, which dropped to -20 from -15 in October, and for foreign orders, which fell to -15 from -4, mainly affecting other transport equipment. Optimism for personal production prospects eased to 14 from 19, though it remained well above the long-term average, while past production improved (-10 vs -13) but stayed below average. Positive sentiment about finished-goods inventories declined (16 vs 19), general production prospects remained weak at -10, and economic uncertainty held near 30. Workforce balances turned slightly negative (-1 vs 0), and expected selling price trends fell to 2 from 4. By sector, confidence rose in food products and beverages, increased in computer, electronic, and optical products, fell in transport equipment, and improved slightly in other manufacturing.