France Manufacturing Confidence Improves Slightly

France’s manufacturing business climate index edged up to 101 in July 2026 from 100 in June, in line with market expectations and remaining close to its long-term average. Past production rebounded to 7 from 3, while the general production outlook improved for a third straight month to -10 from -15, nearing its historical norm. However, personal production expectations weakened to -1 from 3, the lowest since August 2025. Order books also improved, with the global balance rising to -12 from -14, while foreign orders held steady at -12, both remaining above their long-term averages. Finished goods inventories fell sharply to 10 from 16, dropping below average. Expected selling prices declined markedly to 9 from 20, signaling easing price pressures, while perceived economic uncertainty eased to 30 from 31. Employment indicators were mixed, with past staffing improving to 0 from -1 and expected staffing slipping to -3 from 0.

France’s manufacturing business climate index fell to 100 in June 2026 from 102 in May and below expectations of 101. While the general production outlook improved slightly to -15 from -17, it remained negative. Personal production expectations also weakened to 2 from 4, and expected staffing was flat at 0, signaling muted hiring intentions. There was also a sharp drop in past production to 3 from 14, while order conditions were broadly stable, with global order books unchanged at -14 and foreign order books edging down to -11 from -10, though both remained above long-term averages. Meanwhile, price pressures eased, with expected selling prices declining to 19 from 22, and perceived economic uncertainty falling to 32 from 37. Finished-goods inventories rose slightly to 14 from 13, indicating modest stock rebuilding. Labour market indicators were steady overall, with past staffing unchanged at -2, suggesting broadly stable employment conditions.

France’s manufacturing business climate index rose to 102 in May 2026, compared with expectations and April’s 100. It also marked the highest reading in four months, driven mainly by a sharp rebound in past production, which jumped to 14 from 4, while overall order books improved to -14 from -15 and foreign order books rose to -10 from -12. Finished-goods inventories eased slightly to 13 from 14, though they remained elevated. Labour market signals were broadly stable, with past workforce size unchanged at -3 and expected workforce size edging down slightly to -2. Forward-looking production sentiment remained weak, however, with general production prospects steady at -17 and personal production prospects slipping to 4 from 6. Inflation pressures intensified further, as expected selling prices rose to 22 from 20, the highest in the series, suggesting continued pricing power among manufacturers. Economic uncertainty also remained elevated at 37, unchanged from April.