July manufacturing PMI fell to 49.8, marking a third consecutive month of declining new orders and production.
France’s manufacturing sector contracted in July as the final PMI reading dropped to 49.8 from a preliminary 50.0 and June’s 51.2. The decline reflects weaker new orders, production, and purchasing activity, signaling a sluggish start to the second half of the year.
The downturn extends a three-month streak of falling new orders, while production volumes also decreased, though at a modest pace. Input price inflation eased to a four-month low, but output charges continued to rise, albeit slightly slower than in June.
Rising oil and energy prices late in the month may further pressure costs and confidence, potentially worsening demand destruction if inflation accelerates. Analysts warn of heightened macroeconomic and geopolitical uncertainty ahead.