FX.co ★ French Industry Confidence Dips Slightly

In July 2025, France's manufacturing climate indicator experienced a decline, registering at 96, which aligned with predictions but was a slight decrease from June's revised figure of 97. This shift pushed the index farther from the long-term average of 100, marking the lowest point since January. The decline was attributed to growing pessimism regarding foreign order books, which dropped to -18 from -16 in June, expected workforce size, decreasing to -3 from -2, and personal production prospects, which fell to -4 from -3. Moreover, the gauge of economic uncertainty rose to 30 from 28, and inventories of finished goods edged up to 16 from 15. Simultaneously, the outlook on general production expectations and anticipated trends in selling prices remained unchanged at -12 and 5, respectively, while the evaluation of overall order books became slightly less negative, improving to -20 from -22. In terms of subsector trends, sentiment varied: there was a decline in food and machinery due to reduced output and orders, stability in the transport sector, and improvement in other manufacturing areas, notably chemicals and plastics.