The S&P Global France Manufacturing PMI registered 51.1 in August 2026, slightly below the preliminary estimate of 51.5 but up from 49.8 in July, indicating a renewed expansion in factory activity. Production grew for the first time since April, driven exclusively by intermediate goods producers, while output in both consumer and capital goods sectors continued to contract.
New orders declined for the fourth consecutive month, reflecting subdued external demand, and purchasing activity fell at its steepest rate since June 2025. At the same time, manufacturers accelerated inventory reductions as supply-chain strains intensified, with supplier delivery times lengthening further.
Despite these headwinds, employment rose at the fastest pace in a year, even as backlogs of work declined at their sharpest rate in eighteen months. Inflationary pressures continued to soften, with both input costs and output prices increasing at their slowest pace since February. Business confidence, however, weakened, and expectations for future output turned pessimistic for the first time in ten months.
