The HCOB France Manufacturing PMI rose to 49.8 in May 2025 from 48.7 in April, confirming initial estimates. Production levels increased for a second straight month, with higher output reported by consumer and intermediate goods makers. Although incoming new orders declined in May, the rate of contraction was only marginal. Notably, employment in the sector posted its first increase in two years and the sharpest since March 2023. On the cost front, output prices fell for the seventh time in the past eight months, with May’s decline marking the steepest since November 2024. The drop was partly aided by a softening of cost pressures as input price inflation eased again. Nevertheless, cost considerations drove manufacturers to reduce stocks of both pre- and post-production items. Meanwhile, backlogs of work rose for the first time since January 2023. Lastly, business confidence rose to its highest since February 2022, bolstered by new product launches and optimism about future demand.