France’s manufacturing business climate index inched up to 101 in July 2026 from 100 in June, matching market expectations and staying close to its long-term average. Past production rebounded, with the corresponding balance rising to 7 from 3, while the general production outlook improved for a third consecutive month, to -10 from -15, moving nearer to its historical norm. In contrast, personal production expectations softened to -1 from 3, their lowest level since August 2025.
Order books strengthened as well: the overall balance improved to -12 from -14, while foreign orders remained unchanged at -12. Both indicators stayed above their long-term averages. Finished goods inventories fell sharply, dropping to 10 from 16 and moving below their average level.
Expected selling prices declined notably, to 9 from 20, pointing to easing price pressures. Perceived economic uncertainty edged down to 30 from 31. Labor market signals were mixed, with the balance of past employment rising to 0 from -1, while expected staffing slipped to -3 from 0.
