France Private Sector Contracts at 48.4, Dragging Eurozone PMI to 51.9
Updated
Updated · Euronews · Oct 23
France Private Sector Contracts at 48.4, Dragging Eurozone PMI to 51.9
3 articles · Updated · Euronews · Oct 23
Summary
France’s composite PMI fell to 48.4 in October from 51.1, ending September’s brief rebound as services dropped to 48.4 and manufacturing slipped to an 11-month low of 49.3.
Political uncertainty, higher energy costs and rising French borrowing costs hit demand: firms reported customers delaying projects, new orders posting their fastest fall since May, and export business shrinking for an 11th straight month.
French companies also cut staff for a sixth month, while 12-month business expectations turned negative for the first time in almost two years and sank to their lowest since April 2020.
The French downturn pulled the eurozone composite PMI down to 51.9 from 53.1, a four-month low that still implies modest growth of about 0.3% for the quarter.
Germany held up better with a 52.8 composite reading and manufacturing at 54.2, but rising input costs and Brent near $114 a barrel are adding to pressure on the ECB as inflation stays stubborn.