2025.12.1608:23:18UTC+00France Manufacturing Returns to Expansion

In December 2025, France's HCOB Flash Manufacturing PMI climbed to 50.6, up from 47.8 in November, surpassing the anticipated figure of 48, as per preliminary estimates. This indicates a return to expansion, achieving the highest PMI since August 2022. Manufacturing output exhibited signs of stabilization following a sharp decline in November, with the production index rising to 49.7 from 45. New orders showed modest growth, bolstered by an uptick in foreign demand, while backlogs decreased at a slower rate. Employment within the manufacturing sector increased, reversing the previous month's reduction, as companies resumed hiring. Input cost pressures diminished; however, factory gate prices surged at the quickest rate in 16 months. Despite these advancements, business sentiment remained wary due to ongoing political uncertainty and tepid consumer demand, keeping confidence below historical norms.