France's manufacturing sector picked up slightly in August, according to the final S&P Global PMI data, although the revised reading came in below the preliminary estimate.

The final France August manufacturing PMI was 51.1, compared with 51.5 in the preliminary reading and 49.8 previously. A reading above 50 indicates expansion, reaffirming a mild rebound in French manufacturing activity during the month, supported by stronger production growth.

However, the report also showed that new orders continued to decline, indicating that demand conditions remained subdued. S&P Global said the data pointed to still-weak demand, falling business confidence and more aggressive destocking, making August's renewed output expansion appear unconvincing. That contrast matters for gauging the durability of the recovery, since stronger production without a clearer pickup in orders can leave manufacturers with less visibility on near-term activity.

Inflationary pressures eased further in the month, even as suppliers' delivery times lengthened more sharply. Both input prices and output charges increased at their slowest pace since February, although they remained above levels seen before the US-Iran conflict.

S&P Global noted that the decline in inflationary pressures was a positive development given the rise in oil prices over the summer. It added that the disinflationary trend in factory gate prices could provide a needed tailwind for order books.

The organization said:

"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."