France's composite PMI declines to 47.3, marking nine-month low

The HCOB France Composite PMI dropped to 47.3 in October 2024, down from 48.6 in September and below market expectations of 49.

France's composite PMI declines to 47.3, marking nine-month low

This marks the second consecutive month of contraction in the private sector and the steepest decline in nine months. The services sector continued to contract (PMI at 48.3 compared to 49.6 in September), while manufacturing activity remained in a significant downturn (PMI at 44.5 versus 44.6). Total new orders experienced their sharpest decline of the year, mainly due to a substantial decrease in demand from export markets, with sales to non-domestic clients falling at the fastest pace since May 2020.

Input price inflation eases to four-year low; business sentiment hits 11-month low

Meanwhile, input price inflation eased to its lowest level in nearly four years, while output prices increased slightly after remaining stable in September. Lastly, business sentiment fell to an 11-month low amid ongoing economic uncertainty. Prime Minister Michel Barnier is grappling with a fragile political environment and an unresolved 2025 budget, further eroding confidence in France.