FX.co ★ French Manufacturing Downturn Continues

In November 2025, France's HCOB Manufacturing PMI registered a decline to 47.8, in alignment with preliminary projections and a decrease from 48.8 in October, indicating a more pronounced contraction in the manufacturing sector. November saw production drop at a rate not witnessed since February, predominantly due to significant reductions in consumer and investment goods; however, the decrease in intermediate goods was less severe. The downturn in new orders persisted for three and a half years, although export volumes notably increased for the first time in almost four years. Employment figures showed a decrease for the first time since April, attributable to widespread non-renewals of temporary contracts. Furthermore, businesses sharply cut back on purchasing activity and reduced inventories of both inputs and finished products. Input costs experienced a slight increase, while prices charged remained stable, constrained by competitive market conditions. Nonetheless, business sentiment improved, as reflected by the Future Output Index surpassing the 50 mark, indicating optimism for production growth in the coming year.