Despite a positive revision, the figure is still a mild drop compared to the July reading. That continues to mark a poor state of affairs for French manufacturing in Q3. HCOB notes that:

“The state of the French manufacturing sector is deteriorating. What seemed like a recovery of the industrial sector at the
start of 2024 turned out to be just a brief uptick. The slowdown of the manufacturing sector continued in August. Output
declined for the twenty-seventh month running, as too did new orders overall.

“Suppliers’ delivery times are lengthening again, partly due to disruption at the Red Sea. In August, the index for suppliers’
delivery times dropped by over three points compared to July and over five points compared to June, therefore extending
July’s downturn.
“French manufacturers raised selling prices even though input price inflation cooled. In August, the corresponding index for
output prices increased sharply, while input prices increased at a slower pace compared to the previous month.

“The consumer goods sector is giving the French manufacturing sector a boost. It was the only sub-sector where output
increased, while investment and intermediate goods production declined. Consumer goods companies remained positive on
their outlook, although new orders here dropped sharply.

“French manufacturers are bracing for tough times ahead. For the first time since the beginning of the year, the index for
future output expectations dropped below the neutral threshold. The index fell further in August and was below the long-term
average for the third month in a row. Surveyed manufacturers mentioned political uncertainty, both domestically and abroad
as a concern.”