FX.co ★ France Factory Downturn Mildest Since Early 2023

The HCOB France Manufacturing PMI increased to 48.7 in April 2025, up from 48.5 in March, following a revision of the initial estimate of 48.2. Despite indicating ongoing contraction, this figure represents the least severe decline since the downturn began in February 2023. Notably, output saw an uptick for the first time in nearly three years, driven primarily by consumer and investment goods. Moreover, the decline in new orders moderated for the fifth consecutive month. Export demand continued to weaken, although at the slowest rate since early 2022. In spite of these tentative signs of recovery, companies continued to downsize their workforce, reduce purchases, and cut inventory levels, albeit at a more moderated pace. Price reductions persisted amid intense market competition, even as input costs experienced a slight increase due to rising raw material prices and currency fluctuations. Supplier delivery times were extended as a result of port strikes. Nonetheless, business confidence reached an 11-month high, buoyed by hopes of a steady demand recovery and supportive European Central Bank policies.