FX.co ★ France Industry Confidence Strongest Since 2022

In January 2026, France's manufacturing business climate indicator increased to 105 from December's 102, surpassing the predicted level of 101 and remaining above its long-term average of 100 for the second consecutive month. This marks the highest level since July 2022. Optimism has grown regarding personal production prospects, rising from 10 to 17, while concerns over general production prospects have slightly eased, improving from -6 to -4. There is also a reduction in pessimism regarding overall order books, improving from -17 to -11. However, perspectives on finished-goods inventories have weakened, declining from 19 to 8. Stability was observed in foreign orders, which remain at -6, past production at 7, and economic uncertainty at 33. Workforce-related balances continue to be somewhat negative. Sector-wise, confidence saw a significant boost in "other manufacturing" and transport equipment, modest gains in food and beverages, but a decline in machinery and equipment goods. Supply constraints remain a challenge, with 18% of respondents citing sourcing issues, 14% workforce shortages, and 24% each attributing obstacles to supply-only and demand-only issues.