Key facts
- French business activity contracted in October, reversing September's growth.
- Services PMI fell to 48.4, manufacturing PMI to 49.3, and composite PMI to 48.4.
- Businesses cited heightened political uncertainty and economic pressures.
French business activity unexpectedly contracted in October, reversing September's growth, according to S&P Global. The services PMI fell to 48.4, below forecasts, reflecting heightened political uncertainty and economic pressures. The manufacturing PMI also declined, with the composite PMI dropping to 48.4.
The contraction in French business activity signals a weakening economy, potentially impacting the euro zone and reflecting investor concerns over political stability and fiscal health ahead of elections.
French business activity unexpectedly contracted in October, a sharp reversal from September's growth, according to a survey by S&P Global released on Friday. The decline was driven by the sharpest drop in demand for French goods and services since May, with businesses attributing the downturn to increased political uncertainty and economic pressures. French government borrowing costs have risen recently due to investor concerns about the country's finances, and street protests have heightened political tensions ahead of the spring presidential election. The services PMI fell to 48.4 from 51.2 in September, while the manufacturing PMI dropped to 49.3 from 50.6. The composite PMI also declined to 48.4 from 51.1.
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