France’s HCOB Flash Manufacturing PMI rose to 50.6 in December 2025 from 47.8 in November, beating expectations of 48, according to preliminary estimates. The reading signals a return to expansion territory, marking the highest PMI level since August 2022. Manufacturing output nearly stabilized after November’s sharp decline, with the production index climbing to 49.7 (from 45 in November). New orders increased slightly, supported by a lift in foreign demand, while backlogs fell at a slower pace. Employment in the manufacturing sector picked up, reversing November’s reduction, as firms renewed hiring efforts. Input cost pressures eased, though factory gate prices rose at the fastest pace in 16 months. Despite these improvements, business sentiment remained cautious amid ongoing political uncertainty and subdued consumer demand, keeping confidence below historical averages.