France Industry Confidence Weakens Slightly

France’s manufacturing climate indicator fell to 96 in September 2025, matching expectations, down from 97 in August and still below the long-term average of 100. The decline was driven by weaker past production (-8 vs -1 in August), the lowest since 2013 outside the pandemic years, and a further drop in general production prospects (-14 vs -12). Order books softened overall (-23 vs -20), with foreign demand also easing (-17 vs -15), while finished goods inventories rose back above average (16 vs 11). On employment, firms reported smaller past workforce levels (-4 vs -2), though expectations improved slightly (-1 vs -2). Personal production prospects rebounded strongly (8 vs -4), moving above average, while selling price expectations edged lower (2 vs 3). By sector, sentiment weakened in transport equipment but improved in food and beverages and in machinery and equipment goods, while other manufacturing was stable at 95, well below its historical average.