01.09.202508:01:44UTC+00France Manufacturing Unexpectedly Returns to Growth

The HCOB France Manufacturing PMI increased to 50.4 in August 2025, marking an unexpected expansion from the preliminary estimate of 49.9, and improving from July's figure of 48.2. This growth denotes the first since January 2023, although it signifies only a slight enhancement in the operating environment, as reductions in output and new orders notably softened. Export orders continued to decline, albeit at a slower rate, with persistent weakness observed from US markets. Purchasing activity was reduced at its mildest level in over three years, while inventories of both raw materials and finished goods decreased. Delivery delays intensified, highlighting ongoing supply chain issues. On a positive note, employment increased for the fourth consecutive month, achieving the most rapid growth in more than three years, driven by increased confidence that reached a six-month high. Regarding pricing, input cost inflation accelerated to its highest level in five months, attributed to rising wages and raw material costs, whereas output prices experienced only a marginal rise amid fierce competition.