The S&P Global France Manufacturing PMI slipped to 49.8 in July 2026 from 51.2 in June, indicating a renewed contraction in factory activity after the flash estimate had suggested stagnation. Both output and new orders fell at a faster pace as demand weakened, weighed down by price pressures, fragile client confidence, and the impact of the Middle East conflict. Export orders recorded their sharpest decline in a year.
Manufacturers cut purchasing activity at the quickest rate since March and continued to run down both input and finished goods inventories. Backlogs of work decreased for only the second time this year, even as employment rose at the fastest pace since December.
Supply-chain pressures remained significant, with delivery times still heavily extended amid shortages of electronic components and chemical products. On the price front, input cost inflation eased to a four-month low, while output price inflation moderated only marginally. Despite the current weakness, business confidence improved, supported by expectations of stronger sales conditions over the coming year.
