The HCOB France Manufacturing PMI rose to 49.9 in August 2025 from 48.2 in July, beating market forecasts of 48, according to a preliminary estimate. This was the highest reading since January 2023, though the sector remains under pressure from weakening international competitiveness and a challenging trade environment amid US tariffs. While business activity was broadly stable in August, there remained evidence of demand weakness as order volumes continued to fall. Global supply chains are likely still adjusting to new tariff regimes, contributing to longer delivery times. Meanwhile, manufacturers reported stronger hiring activity, with respondents citing a mix of both permanent and temporary staff recruitment. Regarding prices, cost inflation picked up, attributed to wage pressures and higher raw material prices. Looking ahead, French companies were pessimistic about future activity, with weaker output expectations concentrated in the manufacturing industry.