France manufacturing PMI falls to 44.5 amid ongoing contraction

The HCOB France Manufacturing PMI decreased to 44.5 in October 2024, down from 44.6 in September, matching earlier estimates and marking the 21st consecutive month of contraction in manufacturing activity.

France manufacturing PMI falls to 44.5 amid ongoing contraction

A sharp decline in new orders, driven partly by a significant drop in foreign demand, resulted in production volumes falling at their fastest pace since January. Domestically, cautious consumer spending and a weakened construction sector are further dampening demand. Additionally, reports indicate that geopolitical tensions and a slowing global economy significantly affect international sales.

Declines in employment and purchasing activity amid pessimistic business outlook

As a result, employment, purchasing activity, and inventories all saw declines. On the price front, input costs fell for the first time since March, reversing a spike in July, although average selling prices remained unchanged from September. Looking ahead, businesses expressed a pessimistic outlook, reporting their most negative sentiment in a year.