France’s HCOB Manufacturing PMI slipped to 50.1 in February 2026 from 51.2 in January, though it was revised up from the initial flash estimate of 49.9. The latest reading points to broad stagnation in the sector. Factory output continued to grow, but at a slightly slower pace than in January, while new orders declined marginally amid softer domestic and external demand.
Stocks of finished goods increased for the first time since July of last year, reflecting the combination of higher output and weaker order inflows. In contrast, pre-production inventories were broadly unchanged, as manufacturers kept purchasing activity lean. Employment in the sector fell for the first time in three months, with reports of cuts to permanent staff.
On the cost front, input prices rose at the fastest pace in six months, leading firms to raise their output prices at the steepest rate in a year and a half. Despite the slowdown in orders, manufacturers remained optimistic about growth prospects over the coming 12 months, supported by solid sales pipelines and generally positive demand expectations.
