July’s reading marks the first contraction in French factory activity since January, missing forecasts as orders and output decline.
France’s manufacturing PMI slid to 49.8 in July from 51.2 in June, signaling a contraction in factory activity. The decline fell short of the 50.0 estimate, driven by sharper drops in production and new orders.
The index had remained above the 50 threshold since February, with June’s reading at 51.2. Firms reported reduced purchasing volumes and lower inventories as demand weakened, reflecting cautious spending amid economic uncertainty.
Markets had anticipated a marginal expansion, but the data underscores growing pressure on the sector.