France’s manufacturing climate indicator slipped to 96 in July 2025, in line with expectations and slightly down from June’s revised figure of 97, moving further away from the long-term average of 100. This marked the lowest level since January, driven by increased pessimism toward foreign order books (-18 vs -16 in June), expected workforce size (-3 vs -2), and personal production prospects (-4 vs -3). Also, the economic uncertainty gauge rose (30 vs 28), and finished goods inventories increased (16 vs 15). Meanwhile, views on general production expectations (-12) and expected trends in selling prices (5) remained unchanged, while assessments of overall order books turned slightly less negative (-20 vs -22). Across subsectors, trends were mixed: sentiment declined in food and machinery due to weaker output and orders, held steady in transport, and improved in other manufacturing, particularly in chemicals and plastics.