France Manufacturing Sector Returns to Growth

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.

France’s S&P Global Manufacturing PMI fell to 49.7 in May 2026 from 52.8 in April, slipping back into contraction, but above the flash estimate of 48.9. Output and new orders declined, reversing April’s stockpiling-driven gains, while production, purchasing volumes, and inventories also fell. Export demand weakened, particularly from Belgium, Germany, and Ukraine. Supply-chain pressures intensified, with vendor delivery times lengthening at the fastest pace since January 2023 due to raw material shortages, transport constraints, and higher fuel costs. Purchasing activity eased after April’s surge, while firms reduced inventories at the fastest rate since November 2025. Employment continued to fall, and backlogs of work declined for the first time this year. Input cost inflation climbed to a four-year high on fuel, metals, and chemicals, while output prices increased at the fastest pace in 40 months. Business confidence weakened amid uncertainty, low demand, and geopolitical tensions.

France’s S&P Global Manufacturing PMI fell to 48.9 in May 2026, slipping back into contraction after five months of expansion and down from 52.8 in April, preliminary estimates showed. The reading also defied expectations of continued expansion at 52.2, as output declined amid weaker demand conditions, with firms citing higher fuel and energy costs, material shortages, and broader economic uncertainty as key factors weighing on production. The manufacturing output index shed more than 6 points on the month to 46.4. Price indices also continued their ascent in May, signaling a further rise in inflationary pressure, with input costs rising at a faster pace, as metal- and oil-based products featured heavily in supplementary survey responses.