France Factory Growth Slows in September

The S&P Global France Manufacturing PMI eased to 50.6 in September 2026 from 51.1 in August, surpassing the preliminary estimate of 50.3. Factory production increased for a second straight month, but only marginally as falling demand weighed on output. New orders declined for a fifth consecutive month, although the pace of contraction eased to its slowest in the current downturn, while export orders fell for a ninth month. Purchasing activity and inventories also decreased as firms sought to align stocks with order books and protect cash flow. Employment edged lower after a brief period of growth, while supplier delivery times lengthened sharply amid shortages and disruptions related to the Middle East war. Meanwhile, input costs and output prices rose at faster rates, marking the first acceleration since May, while business confidence remained fragile amid inflation, higher interest rates, overseas competition, and election uncertainty.

The S&P Global France Manufacturing PMI fell to 50.3 in September 2026 from 51.1 in August, marking a second consecutive month of expansion albeit at a softer pace, preliminary estimates showed. The reading also came below market expectations of 50.9, as the manufacturing output index declined to 50.2 from 50.7, indicating only marginal growth in production.

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.