Final data released by IHS Markit revealed that operating conditions in France’s manufacturing sector improved modestly in January. The headline IHS Markit France Manufacturing Purchasing Managers' Index (PMI) came in at 51.2 last month, compared to a preliminary reading of 51.2 and a final reading of 49.7 in December 2018. That matched economists’ forecasts. A reading above 50 signals an expansion in activity, while a reading below this level signals a contraction. 

However, the underlying data pointed to further contractions in key indicators such as output and new orders, though the rates of their declines were only fractional overall. At the same time, input price inflation eased to the softest in eight months. Optimism towards the business outlook reached a six-month high and employment recorded the fastest growth since September.