France Manufacturing Sector Returns to Growth

France's S&P Global Flash Manufacturing PMI fell to 50.0 in July 2026 from 51.2 in June, below market expectations of 51.0, flash estimates showed. The reading indicated stagnation in factory activity, with manufacturing output declining at a slightly faster pace as firms cited weaker demand. The output index fell to 48.8 from 49.1, while new manufacturing orders contracted at a quicker rate. New export orders also declined sharply for an eighth consecutive month, highlighting continued weakness in external demand. Backlogs of work continued to decrease, pointing to reduced workloads among manufacturers. On the price front, manufacturing input costs and output prices rose at softer rates in July, marking a further easing in inflationary pressures.

The S&P Global France Manufacturing PMI was revised higher to 51.2 in June 2026 from 50.7 in the preliminary estimate and 49.7 in May, despite contractions in production and new orders. Muted market conditions and overstocked clients caused domestic sales and output to fall, though their rates of decline slowed. Crucially, the headline expansion was heavily influenced by severe supply side friction, as thin transit availability and material shortages triggered the most intense delivery delays in nearly four years. To manage these delays, manufacturers aggressively depleted existing preproduction inventories at the fastest pace in seven months. Meanwhile, factories marginally expanded employment, though backlogs continued to build. Input costs for chemical, transport, and oil based items remained elevated, forcing factories to increase selling fees, even as overall cost pressures cooled for the first time since December.

France’s S&P Global Manufacturing PMI rose to 50.7 in June 2026, returning to growth after a brief contraction of 49.7 in May and coming in above market expectations of stabilisation at 50, flash estimates showed. This came as output declined at a softer pace, with the index coming in at 48.9 and reaching a two-month high, up from 47.8 in June. At the same time, there was also a smaller decline in new orders, suggesting a moderation in the pace of weakness across demand conditions. Backlogs of work showed a fractional improvement, with manufacturers reporting a slight rise in work-in-hand even as overall demand remained subdued. Cost pressures also eased but remained elevated, while output price inflation softened further compared with May.