FX.co ★ French Manufacturing Downturn Deepens

France’s HCOB Flash Manufacturing PMI fell to 47.8 in November 2025, down from 48.8 in October, indicating the lowest point in nine months and signaling a further decline in factory conditions, according to preliminary estimates. The rate of production decline increased, with the production index dropping to 45.2. This downturn was fueled by ongoing political uncertainty and unresolved budget issues affecting demand. Although new orders continued to fall, there was a partial offset by renewed growth in export orders for the first time since early 2022, which contributed to a slight increase in backlogs. However, employment weakened as manufacturers began reducing their workforce after a period of modest hiring. Cost pressures intensified, attributed to higher metal prices and increasing wage expenses. Despite rising costs, selling prices remained largely stable, indicating that companies lacked the power to pass these costs onto consumers. Although the current situation remains weak, business confidence improved to its highest level since June, despite being low by historical standards.