French Manufacturing Expands in January Amid Increased Defense Spending

French manufacturing experienced growth in January, marking the fastest production increase in nearly four years, according to a survey by S&P Global. The final manufacturing PMI for France rose to 51.2 in January from 50.7 in the previous month, slightly surpassing the preliminary estimate of 51.0 and reaching its highest level since June 2022. According to Jin10, this expansion is attributed to Europe's plans to boost defense and military spending in response to the ongoing Russia-Ukraine conflict and political tensions with the United States. Jonas Feldhusen, a junior economist at Hamburg Commercial Bank, noted that although existing tariffs continue to create an unstable trade environment, the impact of newly announced U.S. measures is less severe than a year ago. Meanwhile, Europe's efforts to enhance strategic autonomy in defense policy are gradually showing results. These developments are expected to support the manufacturing sector by 2026.