FX.co ★ France Manufacturing Sector Remains Subdued

The HCOB France Manufacturing PMI decreased to 48.1 in June 2025, down from 49.8 in May, but was revised upward from an initial estimate of 47.8. This decline marks the most significant contraction in four months. It underscores a decline in production and the sharpest drop in new orders since February, largely due to subdued demand both domestically and internationally, as well as persistent challenges in the automotive sector. Export orders also experienced a faster rate of contraction, leading to reductions in purchasing activity and inventory levels amid declining demand and delays from suppliers. Delivery times have extended to their longest since February. On the pricing front, input costs rose slightly because of supply chain delays, while selling prices were reduced for a fourth consecutive month due to increased competition. Despite these challenges, manufacturers' confidence improved to its highest point since February 2022, which has encouraged slight job growth for the second consecutive month.