French industry shows 1st output growth since ’21

France’s manufacturing sector showed early signs of recovery in April, with factory output expanding for the first time in nearly three years, the HCOB France Manufacturing PMI data showed.

The headline index edged up to 48.7 from 48.5 in March — the highest reading since early 2023 — though still below the 50.0 threshold signalling growth.

The uptick in production was supported by modest improvements in consumer and investment goods, as well as a softer contraction in new orders, which declined at the slowest pace in 35 months. Export demand also fell less sharply, helped by resilience in the consumer goods segment.

Despite these signs of stabilisation, manufacturers continued to cut jobs, purchasing and inventories in efforts to reduce costs. Average output prices were reduced for a second month amid strong market competition, while input costs rose at the slowest rate in three months.

Supplier delivery times lengthened again, with firms citing strike-related port delays. However, business sentiment improved, hitting an 11-month high as companies anticipated stronger demand ahead.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama