French Manufacturing Sees Fastest Growth in Nearly Four Years

France’s manufacturing sector recorded its strongest expansion in almost four years in January, supported by increased defence and military spending across Europe, according to a survey by S&P Global. The HCOB France Manufacturing final PMI rose to 51.2 points in January, up from 50.7 in December, slightly above the earlier flash reading of 51.0 points. S&P Global highlighted that European plans to step up defence spending, in response to the war in Ukraine and political tensions with the United States, are providing a boost to the manufacturing sector. Jonas Feldhusen, junior economist at Hamburg Commercial Bank, noted that while trade remains affected by existing tariffs, the impact of new U.S. trade announcements is far less disruptive than it was a year ago. Feldhusen added that Europe’s ongoing efforts to strengthen strategic autonomy in defence policy are gaining momentum, which, together with a more stable trade environment, could further support manufacturing growth throughout 2026. This combination of domestic and geopolitical factors is helping French manufacturers navigate uncertainties while expanding production at a pace not seen in nearly four years.