France Manufacturing Returns to Contraction

The HCOB Flash France Manufacturing PMI dropped to 48.1 in September 2025 from 50.4 in August, missing expectations of 50.2 and marking a three-month low, according to preliminary estimates. The Manufacturing Output Index also fell sharply to 45.9, the steepest contraction since February, signaling renewed weakness in the private sector as subdued domestic demand and soft exports weighed on activity. Respondents pointed to weaker order inflows amid political uncertainty and competitive pressures, marking the sixteenth consecutive month of declining new business, although export order contraction eased slightly. Despite the demand slump, firms posted marginal employment growth for a second month, while input inflation cooled to a five-month low and output prices fell for the first time since May. Looking ahead, business confidence weakened slightly, remaining below historical averages amid domestic political turbulence and fragile consumption trends.