FX.co ★ France Manufacturing PMI Slips into Contraction

France’s HCOB Manufacturing PMI slipped to 49.9 in February 2026 from 51.2 in January, undershooting market expectations of 51 and falling back below the neutral 50 threshold to a three-month low, according to preliminary data. Output continued to grow, though at a slower pace, enabling firms to accumulate stocks of finished goods for the first time since July. New orders declined further, weighed down by subdued domestic demand and a sharp drop in export sales amid intense competitive pressures. Sector employment also edged lower, reflecting ongoing caution around hiring. On the pricing front, output charges for manufactured goods rose at the fastest rate in a year and a half, while input cost inflation eased to a four-month low. Despite softer demand conditions and weaker sentiment than in January, manufacturers remained cautiously optimistic about activity over the year ahead.