FX.co ★ France Manufacturing PMI Hits 3-½-Year High

In January 2026, France's HCOB Manufacturing PMI climbed to 51.2 from 50.7 recorded in December, hitting its highest level since June 2022 and surpassing initial forecasts of 51. Production surged at its most significant rate in nearly four years, driven by inventory accumulation and more favorable market conditions. Meanwhile, the volume of outstanding business rose at the fastest pace in 44 months. However, overall new orders slightly declined due to subdued domestic and international demand, particularly from Germany. Factory employment saw a marginal increase, and input costs experienced a modest rise, primarily due to escalating metal prices, especially copper. Despite this, output prices were reduced amid competitive pressures. For the first time in almost four years, purchasing activity and pre-production inventory levels increased, while business sentiment improved beyond its long-term average, indicating optimism for growth over the ensuing year.