France Manufacturing PMI Hits 3-½-Year High

France’s HCOB Manufacturing PMI rose to 51.2 in January 2026 from 50.7 in December, marking its highest reading since June 2022 and above initial estimates of 51. Production expanded at its fastest pace in almost four years, supported by inventory building and improved market conditions, while outstanding business volumes climbed at the sharpest rate in 44 months. Total new orders edged down amid weak domestic and foreign demand, especially from Germany. Factory employment rose slightly, and input costs increased modestly due to higher metal prices, particularly copper. Still, output prices were cut amid competitive pressures. Purchasing activity and pre-production inventories grew for the first time in nearly four years, while business sentiment strengthened above its long-term average, reflecting optimism for growth over the next 12 months.

France’s HCOB Manufacturing PMI rose to 51.0 in January 2026 from 50.7 in December, beating market forecasts of 50.5, flash estimates showed. This marked the highest PMI reading since June 2022, driven by a sharp expansion in output, which grew at its fastest pace since February 2022. Outstanding orders also rose to their steepest level in almost four years, though new business remained in contraction amid subdued domestic and export demand. Factory employment was unchanged, while input costs rose modestly and output prices were stable. Firms cited optimism for the year ahead, with expectations for growth the most positive since September 2024, underpinned by hopes of a resolution to the national budget impasse, entry into new markets, and new product launches. Commenting on the data, Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, noted that while manufacturing showed an improvement, a durable recovery remains uncertain without a rebound in new orders.

France’s HCOB Manufacturing PMI rose to 50.7 in December 2025 from 47.8 in November, returning to growth after three months of contraction and marking the best improvement since June 2022. Production volumes almost stabilised after November’s sharp contraction, supported by the fastest increase in new export orders in close to four years, especially in Eastern and Southern Europe, North America, and parts of Africa. Domestic demand remained weak, though overall new business declined at the softest pace since May. Employment also increased to its fastest payroll growth since August 2024. Purchasing activity and inventories were scaled back to optimize warehouse levels, though declines eased. Input costs continued to rise modestly, while output prices increased for the first time since August 2025. Looking ahead, manufacturers remained cautiously optimistic for 2026, citing expectations of stronger sales and new product launches, though domestic political uncertainty tempered sentiment.