France’s HCOB Manufacturing PMI edged up to 50.2 in March 2026 from 50.1 in February, remaining just above the neutral 50 threshold and defying expectations of a decline to 49.5, according to preliminary data. Nevertheless, output fell, marking the first contraction of the year, and new orders deteriorated further.
Overall demand shrank at the sharpest rate since July 2025, reflecting weak domestic conditions and a pronounced drop in exports amid ongoing geopolitical uncertainty. Employment also declined slightly as firms remained cautious about hiring.
On the supply side, pressures intensified: delivery times lengthened to their greatest extent in more than three years, mainly due to disruptions related to the conflict in the Middle East. Input cost inflation accelerated to its fastest pace since November 2023, driven by higher energy and raw material prices, while output prices also rose more quickly. Business confidence weakened further.
