French manufacturers plan more investments

French manufacturers are planning to increase their investments for 2027, with a balance of opinion of +19, indicating more companies expect growth than decline in their investments. This figure does not predict a 19 percent rise in spending but shows a general upward trend in expectations.

Expectations for demand are weakening

Despite the optimism about investments, manufacturers are less confident about short-term demand. The balance of opinion on expected demand for the next three months dropped from +6 in July to +5 in October, showing a slight but noticeable decline in confidence.

Sectoral differences in investment outlook

The balance of opinion varies by industry. Equipment goods and transport equipment show the highest optimism, with balances of +34, while food processing and other industries have lower but still positive balances. These figures reflect differing conditions and strategies across sectors.

Investment expectations improve compared to 2025

Business leaders are revising their investment expectations for 2026 upward compared to 2025, especially in transport equipment. The latest survey, based on responses from September 25 to October 19, shows an overall improvement in planned investments for the next three months.

Production capacity remains tight

Despite the planned investments, many manufacturers are at the limit of their production capacity. Forty-two percent of companies report they cannot increase production with their current resources, and the utilization rate of capacities remains stable at 82 percent, slightly below the historical average.

Persistent challenges in recruitment and cash flow

Recruitment difficulties remain a significant issue, with 38 percent of manufacturers reporting ongoing challenges. Cash flow conditions are also worsening, with the balance of opinion on cash flow dropping from -9 in July to -13 in October, indicating growing financial constraints for some companies.