21.08.202507:42:11UTC+00France Manufacturing PMI Beats Forecasts

The HCOB France Manufacturing PMI rose to 49.9 in August 2025, an increase from 48.2 in July, thereby surpassing market predictions of 48, as per a preliminary estimate. This figure marks the highest since January 2023, although the sector continues to struggle with diminishing international competitiveness and a difficult trade environment, exacerbated by US-imposed tariffs. August saw relatively stable business activity; however, indicators of weak demand persisted with ongoing declines in order volumes. Global supply chains are still likely adjusting to new tariff regimes, leading to extended delivery times. Manufacturers, on the other hand, reported an uptick in hiring, reflecting a blend of permanent and temporary recruitment. On the pricing front, cost inflation intensified, driven by wage increases and escalating raw material prices. Looking forward, French companies expressed pessimism about future activity, with diminished expectations for output, particularly within the manufacturing sector.