French Manufacturing Sector Begins to Recover
The French manufacturing sector returned to growth in June 2026. The S&P Global Manufacturing PMI rose to 50.7, after previously being in contraction territory at 49.7 in May. This figure also exceeded market expectations, which had expected manufacturing activity to remain stable at 50.
The increase in the PMI indicates that pressure in the factory sector is beginning to ease, although the recovery is not yet fully established. Manufacturing output continued to decline, but at a slower pace than the previous month. The output index rose to 48.9, reaching its highest level in two months.
On the demand side, new orders also weakened, but the decline was not as steep as the previous period. This indicates that pressure on demand is gradually easing. Furthermore, the backlog of work, or unfinished work, showed slight improvement, with manufacturers reporting a slight increase in work in progress.
Cost pressures in the French manufacturing sector are also beginning to ease, although they remain at relatively high levels. Meanwhile, resale price inflation slowed compared to May. Overall, this data suggests that the French manufacturing sector is beginning to emerge from its current slump, but the market remains to be seen whether the recovery can continue in the coming months. (asd)
Source: Newsmaker.id
