According to the report from statistic agency Insee, French manufacturing sector sentiment soured this month as business leaders became less optimistic about activity in the sector.

Figures showed that manufacturing sentiment declined to 102 in June from May's six-month high of 104. Economists had projected a flat reading. June's figure was the lowest since November 2016.

The shift in the mood of the manufacturing sector of the eurozone's second-largest economy comes a day after figures showed deteriorating business sentiment in its largest. 

Investors will now look ahead to Wednesday's releases to gauge the temperature of consumer sentiment in both France and Germany. Economists expect both measures to have turned more negative.