France's Manufacturing PMI Slips to 50.1 in February

The HCOB France Manufacturing PMI eased to 50.1, barely above the growth threshold, as new orders declined despite output rising for a second consecutive month. Falling sales forced factories to stock finished goods, with inventory rising for the first time since July 2025. Export orders dropped at their sharpest rate in seven months, with weaker demand from Europe, Asia, South America, and parts of Africa. Factory employment fell for the first time in three months as permanent staff were let go. Inflationary pressures also intensified, with input costs rising to a six-month high driven by higher metal and metal product prices. Factory selling prices increased at their steepest pace in 18 months. Despite weak order flow, manufacturers remained optimistic about the 12 month outlook, supported by expectations of stronger automotive, aerospace, and public-sector demand.