France Manufacturing Sector Returns to Growth

The S&P Global France Manufacturing PMI rose to 51.1 in August 2026 from 51.5 in the preliminary estimate and 49.8 in July, signaling renewed growth in factory activity. Production increased for the first time since April, driven entirely by intermediate goods producers, while output among consumer and capital goods makers contracted. Meanwhile, new orders fell for a fourth consecutive month amid weak export demand, while purchasing activity declined at the fastest pace since June 2025. Manufacturers also cut inventories more sharply as supply-chain pressures intensified, with supplier delivery times lengthening further. Employment rose at the fastest rate in a year, even as backlogs of work declined at the quickest pace in a year and a half. Inflationary pressures continued to ease, with input costs and output charges rising at their slowest rates since February. Business sentiment also weakened, with expectations for future output turning pessimistic for the first time in ten months.

The S&P Global France Manufacturing PMI rose to 51.5 in August 2026 from 49.8 in July, according to preliminary data, beating market expectations of 50. This marked the first expansion in the manufacturing sector since April. Production increased for the first time since April’s stockpiling-driven surge, suggesting greater stability in the goods-producing economy amid easing price pressures, with both input and output price inflation moderating. Manufacturers also increased hiring at the fastest pace in a year, helping firms clear backlogs more quickly than in July.

The S&P Global France Manufacturing PMI fell to 49.8 in July 2026 from 51.2 in June, signaling a renewed deterioration in factory activity after the preliminary estimate had pointed to stagnation. Production and new orders declined at faster rates as demand weakened amid price pressures, subdued client confidence, and the Middle East conflict, while export orders posted their steepest decline in a year. Manufacturers cut purchasing activity at the fastest pace since March and continued reducing input and finished goods inventories. Backlogs of work declined for only the second time this year, although employment rose at the fastest pace since December. Supply-chain pressures persisted, with delivery delays remaining elevated due to shortages of electronic components and chemical products. Meanwhile, input cost inflation eased to a four-month low, while output price inflation moderated only slightly. Business confidence improved on hopes of stronger sales conditions in the year ahead.