France: Composite PMI increases in October
The HCOB Composite Purchasing Managers’ Index (PMI) came in at 44.6 in October, up from September’s 44.1. As such, the index moved closer to the 50.0 no-change threshold, signaling a softer deterioration in private sector operating conditions compared to the previous month.
The Manufacturing PMI fell to 42.8 in October from September’s 44.2. Meanwhile, the Services PMI rose to 45.2 in October from September’s 44.4.
In October, the gap between the manufacturing and the services sector widened. While the services sector experienced a softer decline in activity, manufacturing output fell at the fastest pace since May 2020, as both domestic and foreign demand weakened sharply. Consequently, manufacturing firms reduced their headcounts again, which caused overall employment levels to decline for the first time in nearly three years.
Looking at both sectors, input price inflation accelerated on higher labor and energy costs. However, output charge inflation eased. Lastly, business confidence remained markedly low.