France Manufacturing Sentiment Weakens

France’s manufacturing business climate index fell to 100 in June 2026 from 102 in May and below expectations of 101. While the general production outlook improved slightly to -15 from -17, it remained negative. Personal production expectations also weakened to 2 from 4, and expected staffing was flat at 0, signaling muted hiring intentions. There was also a sharp drop in past production to 3 from 14, while order conditions were broadly stable, with global order books unchanged at -14 and foreign order books edging down to -11 from -10, though both remained above long-term averages. Meanwhile, price pressures eased, with expected selling prices declining to 19 from 22, and perceived economic uncertainty falling to 32 from 37. Finished-goods inventories rose slightly to 14 from 13, indicating modest stock rebuilding. Labour market indicators were steady overall, with past staffing unchanged at -2, suggesting broadly stable employment conditions.

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