FX.co ★ French Industry Confidence Holds Steady in August

In August 2025, France's manufacturing climate indicator remained steady at 96, unchanged from its six-month low in July and still below the long-term benchmark of 100. Contributing to this stagnation were diminished personal production prospects, which fell to -5 from -4, and persistently low general production expectations, stuck at -12 for the third consecutive month. The overall condition of order books stayed weak, shifting slightly from -20 to -21, while inventories of finished goods experienced a significant decline, dropping to 10 from 16, thus dipping below the average. Labor force balances remained negative at -2, although reports of workforce shortages increased from 9 to 12. Regarding supply constraints, only 21% of firms reported any, marking the lowest percentage since 2017, excluding the COVID period. There was a modest improvement in foreign demand, improving from -18 to -17, while expectations for future selling prices softened from 5 to 2, reaching the lowest level since September 2024. Moreover, economic uncertainty decreased from 31 to 27. Sector-wise, sentiment took a downturn in food and beverages (92), weakened in machinery and electronics, improved within transport equipment, while remaining stable in other manufacturing sectors.