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France's Manufacturing Growth Slows in September Amid Rising Price Pressures
The final manufacturing Purchasing Managers' Index (PMI) for France in September registered at 50.6, slightly up from the preliminary reading of 50.3 but down from 51.1 in August. This indicates a decline in manufacturing activity compared to the previous month, as new orders continued to decrease and purchasing activity was reduced. Despite this, factory production growth was sustained, marking back-to-back expansions for the first time since January 2026.
New order inflows contracted for the fifth consecutive month, although the pace of decline slowed, suggesting a slight easing in customer hesitancy. Price pressures intensified in September, with both input costs and output prices experiencing accelerated inflation for the first time since May 2026. However, the respective PMI indices for these metrics remained below their highs for the year.
The implications of this data are significant for the European Central Bank (ECB), as the renewed acceleration in price pressures could influence monetary policy decisions. France, being the euro area's second-largest economy, provides an early indication of industrial momentum, and markets will be closely monitoring upcoming PMI readings from Germany and the broader Eurozone to assess whether similar trends are emerging in those regions.
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Source: KLEA News