French Business Activity Contracts in October Amid Political, Financial Pressures, PMI Shows
Services and manufacturing both weakened as S&P Global’s flash composite PMI dropped to 48.4, signaling the sharpest demand decline since May.
- French business activity unexpectedly contracted in October, reversing growth from the previous month as S&P Global reported the composite PMI fell to 48.4 points.
- Economic rebound proved short-lived due to rapid financial tightening and rising political pressure across France, according to Joe Hayes, senior principal economist at S&P Global Market Intelligence.
- Services PMI declined to 48.4 points while manufacturing PMI dropped to 49.3, with both figures missing Reuters forecasts and falling below the 50-point expansion threshold.
- Business sentiment for the next 12 months sank to a six-and-a-half-year low as firms worry about France's fiscal situation and the uncertain 2027 presidential election.
- Rising government borrowing costs and recent street protests over living costs have heightened political temperature ahead of the spring presidential election, compounding fiscal concerns.
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French business activity contracts in October amid political, ...
The activity of the private sector of France has fallen during the month of October amid the social tensions in the country of France and in the debt markets, which would have affected the sales and confidence of the companies, according to the preliminary composite PMI index, which has worsened to 48.4 points since [...] The entry The PMI of France enters contraction in October, dragged by the tensions in the street and the markets appear first…
Business activity in France has contracted due to renewed concerns about the country's financial situation and ongoing protests.
The French business sector's composite purchasing managers' index fell to 48.4 in October, compared with 51.2 the previous month, according to preliminary statistics from S&P Global.
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