France Industry Confidence Below Expectations

France’s manufacturing business climate indicator edged down to 102 in February 2026 from 105 in January, below expectations of 104, but remained above its long-term average of 100. Production-related balances weakened, with personal production prospects dropping sharply to 10 from 18, though remaining above average, while general production prospects slipped to -6 from -4. The balance for past production also declined to 3, moving slightly below its norm. Order books deteriorated, with overall orders falling to -16 from -11, while foreign orders were unchanged at -6, remaining well above average. Finished-goods inventories rebounded slightly to 9 but stayed below historical levels. Workforce balances declined for both past and expected employment, although expectations remained above average. Selling price expectations rose to 5 (vs 2), returning above their long-term norm, while economic uncertainty eased marginally but remained elevated (32 vs 33).