French manufacturing PMI edges up in August, confirming mild rebound

• The final reading for France's manufacturing PMI in August was 51.1, below the preliminary estimate of 51.5.
• The index stood at 49.8 in the previous month.

The data confirms a modest improvement in French manufacturing activity during August, supported by stronger output growth. However, new orders continued to decline, highlighting subdued demand conditions.

Adding some positive news, inflationary pressures eased further over the month, even as suppliers' delivery times increased more sharply. Both input costs and output prices rose at their slowest pace since February, though they remained above levels recorded before the US-Iran conflict.

S&P Global commented:

"On the surface, it's a much better PMI report for France's manufacturing sector, but it's difficult to draw much optimism from these figures as the data reveal still-weak demand, falling business confidence and more aggressive destocking. This makes August's renewed output expansion an unconvincing one."

"Falling inflationary pressures are a positive outcome considering the step-up in oil prices over the summer. The disinflationary trend seen in factory gate prices could provide a much-needed tailwind for order books."