France Industry Confidence Below Expectations

France’s manufacturing business climate indicator edged down to 102 in February 2026 from 105 in January, below expectations of 104, but remained above its long-term average of 100. Production-related balances weakened, with personal production prospects dropping sharply to 10 from 18, though remaining above average, while general production prospects slipped to -6 from -4. The balance for past production also declined to 3, moving slightly below its norm. Order books deteriorated, with overall orders falling to -16 from -11, while foreign orders were unchanged at -6, remaining well above average. Finished-goods inventories rebounded slightly to 9 but stayed below historical levels. Workforce balances declined for both past and expected employment, although expectations remained above average. Selling price expectations rose to 5 (vs 2), returning above their long-term norm, while economic uncertainty eased marginally but remained elevated (32 vs 33).

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.