Key facts
- French manufacturing activity expanded in June.
- The Purchasing Managers' Index (PMI) for French manufacturing rose to 51.2 in June.
- This figure exceeded initial forecasts.
- New orders increased at the fastest pace since April 2023.
- Manufacturing output also expanded.
- Supply chain disruptions persisted, leading to longer delivery times.
- Input costs for manufacturers increased.
- Business confidence among manufacturers reached a 15-month high.
- Employment levels in the manufacturing sector remained broadly stable.
France's manufacturing sector demonstrated an accelerated pace of growth in June, with the final Purchasing Managers' Index (PMI) reaching 51.2. This revised figure is an improvement from the preliminary estimate and indicates a move back into expansionary territory after a period of contraction. The growth was supported by a notable increase in new orders, which rose at the fastest pace since April 2023. Output also expanded, albeit at a slower rate than new orders, reflecting the sector's ability to meet rising demand. However, supply chain disruptions continue to pose challenges, with delivery times lengthening and input costs rising. Despite these pressures, manufacturers remain optimistic about future output, with business confidence reaching a 15-month high. The employment level remained broadly stable, with firms hesitant to expand their workforce amidst the prevailing uncertainties.