The HCOB France Manufacturing PMI came in at 48.2 in July 2025, slightly lower than initial estimates of 48.4 and broadly unchanged from June’s reading of 48.1. The reading remained below the 50 threshold, indicating persistent weakness in the sector. New orders fell sharply and at an accelerated pace in July, marking the steepest decline since January, amid weak domestic demand and falling exports. While this weighed on production volumes, the decline in factory production was milder compared to previous periods. Meanwhile, French goods producers lowered their purchasing volumes in July, continuing the solid decline in buying activity that has persisted since mid-2022. Factory employment increased for the third straight month in July, but job growth was marginal. On the price front, cost pressures were relatively soft in July. Looking forward, business confidence sank to its lowest level since February, ending an eight-month sequence of improving expectations.