France manufacturing sector shrank in May 2026 for the first time ever since November 2025 as the surge in energy prices as well as transport disruptions from the Iran conflict took their toll, a report conducted by S&P Global showed on June 1, 2026, confirms Reuters.

Interestingly, the S&P Global France Manufacturing final Purchasing Managers’ Index – PMI dropped to 49.7 points in May 2026, down from 52.8 in April 2026, but higher than an April flash manufacturing PMI reading of around 48.9 points.

It is well to be noted that a reading below 50 signifies a decline in activity, while a reading more than 50 signifies expansion.

Apparently, within the France manufacturing sector, the final manufacturing PMI reading of April 2026 of 49.7 was the lowest reading since November 2025 and the first time it had been below the 50-point mark since November 2025.

According to the principal economist at S&P Global Market Intelligence, Joe Hayes, “Supply chains are still adjusting to the volatility induced by the war in the Middle East and the ensuing energy-price shock. For example, more French manufacturers experienced delivery issues and input price rises than in April – pressures that could play out as higher goods prices and supply issues across the economy more broadly over the coming months.”