France Industry Confidence Strongest in 7 Months

France’s manufacturing business climate index rose to 105 in October 2026, above market expectations and September’s 101, marking its highest level since July 2022. The improvement was driven mainly by overall order books (-11 vs -16 in September) and foreign order books (-1 vs -10), with the latter reaching its highest level since April 2022. Personal production prospects increased for the third consecutive month to 19 from 14, their highest level since February 2022, while past production rebounded to 2 from -1. General production prospects also improved for the sixth consecutive month to -8 from -9, returning to their long-term average. Meanwhile, finished-goods inventories declined to 9 from 13, while expected workforce size edged up to -1 from -2. Expectations for selling prices eased to 11 from 15 but remained above their long-term average. Economic uncertainty among business leaders rose to 36 from 32.

France’s manufacturing business climate index stood at 101 in September 2026, unchanged from August’s revised figure and July’s reading, but slightly below market forecasts of 102. Personal production prospects increased (15 vs 12 in August), while general production prospects rose for the fifth consecutive month (-9 vs -10). However, overall order books deteriorated further (-16 vs -14), while foreign orders remained unchanged for the third month (-12), suggesting weaker demand. Finished-goods inventories rose sharply (13 vs 6), moving just above their average. Expected workforce size also declined (-1 vs 2), indicating a cautious approach to hiring. At the same time, expectations for selling prices over the next three months rose again (14 vs 10), remaining well above their average, with the increase particularly pronounced in the manufacture of food products and beverages. As for economic uncertainty felt by business leaders, the index was steady at 32, slightly above its average.

France’s manufacturing business climate index rose to 103 in August 2026, above the expected and July’s 101, remaining above its long-term average. This marked the strongest reading since January, mainly reflecting a sharp rebound in personal production prospects to 9 from -1 in July and an improvement in foreign order books to -8 from -12. Past production eased to 5 from 7 but remained positive, while overall order books held steady at -12. The stronger sentiment was also supported by a further decline in finished-goods inventories to 6 from 11 and easing economic uncertainty, which fell to 28 from 30 for a fourth month. Meanwhile, the general production outlook remained subdued at -11, while expected selling prices edged up to 11 from 9. Employment indicators were mixed, with past staffing slipping to -1 from 0, while expected staffing rebounded to 1 from -3. By sector, transport equipment confidence strengthened, while other manufacturing rose to its highest in four years.