FX.co ★ France Manufacturing Contraction Eases

According to preliminary estimates, the HCOB France Manufacturing PMI rose to 49.5 in May 2025, up from 48.7 in April, exceeding market forecasts of 48.9. While this figure still indicates a contraction within the sector, it represents the mildest decline since the downturn began in February 2023. This improvement is primarily driven by the most substantial growth in factory output observed in over three years. Although new orders continued to decrease, the rate of contraction has slowed significantly, marking the slowest decline during this prolonged three-year period. Additionally, the reduction in workforce numbers has eased. Notably, manufacturers experienced an increase in backlogs of work for the first time in nearly two and a half years.