France business activity deteriorates in October, missing consensus

France’s private-sector activity contracted in October, with the flash composite PMI falling to 48.4 from 51.1 in September, missing the consensus estimate of 50.5. The latest reading marked a four-month low, reflecting a renewed downturn in private-sector activity following September’s rebound.

The flash services PMI Business Activity Index declined to 48.4 in October from 51.2 in September, reaching a two-month low, below the consensus estimate of 50.7.

Meanwhile, the flash manufacturing output index fell to 48.5 from 50.3, indicating a contraction in manufacturing output and missing the consensus estimate of 50.5.

"September's rebound in economic activity proved to be short lived, which is hardly surprising given the rapid tightening of financial conditions and a further increase in political pressures across France during October. Today's PMI data showed that this immediately manifested itself through reduced purchasing and investment activity as private sector sales volumes fell at the quickest pace since May." said Joe Hayes, Senior Principal Economist at S&P Global Market Intelligence.

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