France Manufacturing PMI Slips into Contraction

France’s HCOB Manufacturing PMI slipped to 50.1 in February 2026 from January’s 51.2, revising higher from initial estimates of 49.9, signaling broad stagnation in the sector. Factory output rose at a slightly softer pace than in January, while new orders decreased marginally, weighed down by weaker domestic and export demand. Stocks of finished goods rose for the first time since last July, reflecting the combination of rising output and softer new orders, whereas pre-production inventories remained broadly stable as manufacturers maintained leaner purchasing. Factory employment fell for the first time in three months, with permanent staff reductions reported. On the cost side, input prices increased at the fastest rate in six months, prompting firms to lift output prices at their steepest rate in a year-and-a-half. Despite the slowdown in orders, manufacturers remained optimistic for growth over the next 12 months, supported by healthy sales pipelines and positive demand forecasts.

France’s HCOB Manufacturing PMI slipped to 49.9 in February 2026 from 51.2 in January, missing expectations of 51 and falling below the 50 no-change threshold to hit a three-month low, according to preliminary estimates. Production continued to expand, albeit at a slower pace, allowing firms to build up stocks of finished goods for the first time since July. New orders declined further, weighed down by weak domestic demand and a sharp contraction in export sales amid competitive pressures. Employment in the sector also fell slightly, reflecting ongoing caution in staffing. On the pricing side, charges for manufactured goods rose at the fastest pace in a year and a half, while input cost inflation eased to a four-month low. Despite weaker demand and softer confidence compared with January, manufacturers remained cautiously optimistic about activity over the year ahead.

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.