{"id":440720,"date":"2026-10-23T16:01:06","date_gmt":"2026-10-23T09:01:06","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/france-october-pmi-slumps-back-into-contraction-as-political-uncertainty-weighs-on-demand-440720\/"},"modified":"2026-10-23T16:01:06","modified_gmt":"2026-10-23T09:01:06","slug":"france-october-pmi-slumps-back-into-contraction-as-political-uncertainty-weighs-on-demand","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/france-october-pmi-slumps-back-into-contraction-as-political-uncertainty-weighs-on-demand-440720\/","title":{"rendered":"France October PMI slumps back into contraction as political uncertainty weighs on demand"},"content":{"rendered":"<div>\n<ul>\n<li>France October flash services PMI 48.4 vs 50.7 expected<\/li>\n<li>Prior 51.2<\/li>\n<li>France October flash manufacturing PMI 49.3 vs 50.5 expected<\/li>\n<li>Prior 50.6<\/li>\n<li>France October flash composite PMI 48.4 vs 50.5 expected<\/li>\n<li>Prior 51.1<\/li>\n<\/ul>\n<p style=\"text-align: justify\" class=\"text-align-justify\">That&#8217;s not a good sign as the French private sector falls back into contraction in October, amid political and financial concerns.\u00a0Weighing<br \/>\non activity levels was the sharpest decline in demand for<br \/>\nFrench goods and services since May, which surveyed<br \/>\nbusinesses attributed to heightened uncertainty and<br \/>\neconomic pressures.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">The only good news perhaps for the ECB is that\u00a0the survey&#8217;s price gauges decreased from<br \/>\nSeptember to signal an easing of input cost and output<br \/>\ncharge inflation rates.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">Looking at the breakdown, manufacturers and<br \/>\nservice providers reported steeper declines in demand amid<br \/>\nreports of projects being postponed as customers held back<br \/>\non decision making. Meanwhile,\u00a0French businesses turned<br \/>\npessimistic towards one-year outlook with the future composite index falling\u00a0to its lowest<br \/>\nlevel since April 2020. That indicates\u00a0negative corporate<br \/>\nsentiment for the first time in close to two years. The more downbeat<br \/>\nexpectations were often linked to next year&#8217;s election period,<br \/>\nwith some companies also expressing concerns regarding<br \/>\npublic finances.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">On prices, data at the composite level signalled an easing of<br \/>\ninflation across France in October. The service sector was<br \/>\nthe main driver, with slower rates of input cost and output<br \/>\ncharge inflation offsetting sharper price pressures for<br \/>\nmanufacturers.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">Overall, the report today does at least put economic expectations and inflation pressures in sync. Both are coming in a little softer and may tone down ECB rate hike expectations. But again, this is only France &#8211; who is already facing up against big troubles from a fiscal and economic standpoint. We still have to see how the PMI numbers play out with Germany and the rest of the euro area for better confirmation.<\/p>\n<\/p>\n<p>                            This article was written by Justin Low at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>France October flash services PMI 48.4 vs 50.7 expected Prior 51.2 France October flash manufacturing PMI 49.3 vs 50.5 expected Prior 50.6 France October flash composite PMI 48.4 vs 50.5 expected Prior&hellip;<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-440720","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/440720","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=440720"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/440720\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=440720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=440720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=440720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}