Published by Global Banking & Finance Review®
Posted on February 3, 2025
2 min readLast updated: January 26, 2026
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France's manufacturing PMI rose to 45.0 in January 2025, indicating an easing downturn despite ongoing challenges.
PARIS (Reuters) - France's manufacturing downturn showed signs of easing at the start of 2025, as the HCOB France Manufacturing Purchasing Managers’ Index rose to its highest level since last June, a survey showed on Monday.
The index, compiled by S&P Global, rose to 45.0 in January from 41.9 in December. Despite remaining below the 50.0 threshold that indicates growth, the rise suggests a notable easing of the sector's contraction.
The survey highlighted the softest decrease in factory output since July, with new orders also declining at a slower pace amid reduced drag from export markets.
Still, French manufacturers continued to face weak demand and there was a further reduction in employment. Factory workforce numbers fell for the 20th consecutive month, primarily through the non-renewal of temporary contracts.
"France's manufacturing industry remains in a deep recession," said Dr Tariq Kamal Chaudhry, economist at Hamburg Commercial Bank AG, noting that political uncertainty in France had added to manufacturers' concerns.
Input prices increased modestly, while output prices were discounted for the fourth month as firms navigated competitive pressures. Despite the challenges, business sentiment hit a five-month high, reflecting reduced pessimism compared to the end of 2024.
(Reporting by Hugh Lawson; Editing by Christina Fincher)
The HCOB France Manufacturing Purchasing Managers’ Index rose to 45.0 in January from 41.9 in December.
Despite remaining below the 50.0 threshold that indicates growth, the rise suggests a notable easing of the sector.
French manufacturers continue to face weak demand and a further reduction in employment, with workforce numbers falling for the 20th consecutive month.
Dr. Tariq Kamal Chaudhry noted that France's manufacturing industry remains in a deep recession, exacerbated by political uncertainty.
Input prices increased modestly, while output prices were discounted for the fourth month as firms navigated competitive pressures.
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