French Manufacturing Decline Slows, While German And UK Sectors Strengthen

France’s manufacturing sector remained in contraction in February, though at its slowest pace since May 2024.

French manufacturing continued to struggle with slow demand and weak new orders compared to January. I Photo: Stellantis Media

Meanwhile, Germany’s manufacturing sector showed improvement, and the UK’s services sector experienced growth, Euronews reported.

The flash estimate for the French HCOB Manufacturing Purchasing Managers’ Index (PMI) rose slightly to 45.5 in February, up from 45 in January, according to official figures from S&P Global.

While still below the 50 threshold that separates expansion from contraction, the figure met analyst expectations and marked a slight improvement.

French manufacturing continued to struggle with slow demand and weak new orders compared to January. Rising input costs further pressured the sector, contributing to widespread layoffs.

Meanwhile, the country’s services sector also took a hit, with the flash estimate for the HCOB Services PMI dropping to 44.5 in February from 48.2 in January—well below the market forecast of 48.9.

By contrast, Germany’s manufacturing PMI climbed to its highest level in two years, and the UK’s services sector showed growth, offering a more optimistic outlook for those economies.