French business activity unexpectedly contracted in October, with the composite flash PMI falling to 48.4 from 51.1 in September. Services PMI dropped to 48.4 from 51.2, while manufacturing PMI fell to 49.3 from 50.6.
French business activity unexpectedly contracted in October, reversing September’s growth, as demand for goods and services recorded its sharpest decline since May. The composite flash PMI fell to 48.4 from 51.1, below a poll forecast of 50.5; readings below 50 indicate contraction.
The services PMI fell to 48.4 from 51.2, below a forecast of 50.7. The manufacturing PMI dropped to 49.3 from 50.6, below a forecast of 50.5.
Surveyed businesses tied the decline to heightened political uncertainty and economic pressures. S&P Global Market Intelligence economist Joe Hayes said the indicator of firms’ expectations for the next 12 months sank to a six-and-a-half-year low, reflecting concerns about an uncertain 2027 presidential election and France’s fiscal situation.
