FX.co ★ France Manufacturing PMI Highest in Over 3 Years

The HCOB Manufacturing PMI for France increased to 51.0 in January 2026, up from 50.7 in December, surpassing market predictions of 50.5, according to preliminary figures. This marks the highest PMI reading since June 2022, primarily fueled by a significant surge in output, which experienced its fastest growth since February 2022. Outstanding orders rose to their highest level in nearly four years, although new business continued to decline due to subdued domestic and international demand. Factory employment remained stable, while input costs saw a modest increase and output prices remained unchanged. Companies expressed optimism for the upcoming year, with growth expectations being the most positive since September 2024. This optimism is supported by anticipated resolutions to the national budget impasse, entry into new markets, and the launch of new products. Jonas Feldhusen, a Junior Economist at Hamburg Commercial Bank, commented on the data by highlighting that although manufacturing has shown improvement, a sustained recovery is uncertain without a resurgence in new orders.