Key facts
- The S&P Global France Manufacturing PMI fell to 49.5 in October from 50.6 in September, moving back below the 50 no-change mark.
- The final October reading was slightly stronger than the flash estimate of 49.3 points.
- S&P Global said new orders fell at the fastest rate since July 2025 and factory output volumes dropped.
- S&P Global said firms cut purchasing activity and employment in response to weaker demand.
- S&P Global said surveyed firms widely cited higher costs for raw materials, fuel and energy.
- Joe Hayes of S&P Global Market Intelligence said French manufacturing is unable to build any real momentum.
France's manufacturing sector slipped back into contraction in October after expanding for two consecutive months, according to a business survey published on Monday. The S&P Global France Manufacturing Purchasing Managers' Index fell to 49.5 points in October from 50.6 in September. A reading above 50 marks an expansion in activity, while below 50 shows a contraction.
The final October manufacturing PMI was nevertheless slightly stronger than the flash reading of 49.3 points. S&P Global said new orders fell at the fastest rate since July 2025.
S&P Global said there had been a drop in factory output volumes as new orders fell, and that this deterioration in demand prompted firms to retrench, with purchasing activity and employment both lowered. It added that the PMI data pointed to a sharp pick-up in inflation across France's manufacturing economy. Firms surveyed widely mentioned increased costs relating to raw materials, fuel and energy.
"French manufacturing is unable to build any real momentum. Demand conditions deteriorated sharply in October, stacking the odds against a turnaround in the near-term," said Joe Hayes, senior principal economist at S&P Global Market Intelligence.
"Sharply rising cost pressures due to continued supply-related disruptions and high energy prices limit firms' ability to price their goods more competitively," he added.