PARIS (Reuters) -France's manufacturing sector contracted less than initially reported in October, a survey showed on Monday, but remained in a state of weakness during the opening month of the fourth
French Manufacturing Sector Continues to Contract in October
Overview of French Manufacturing Sector
PARIS (Reuters) -France's manufacturing sector contracted less than initially reported in October, a survey showed on Monday, but remained in a state of weakness during the opening month of the fourth quarter as output and new orders saw further marked decreases.
Current PMI Trends
The Final HCOB France Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 48.8 last month, from 48.2 in September and also up versus the 48.3 flash figure.
Challenges Facing Manufacturers
Aside from August 2025, when it stood at 50.4, the manufacturing PMI index has remained below the 50.0 threshold that separates growth from contraction since January 2023.
Future Outlook and Employment
"French manufacturers are facing the future with a sense of pessimism," said Jonas Feldhusen, junior economist at Hamburg Commercial Bank AG. "Political instability and persistently weak demand are key concerns."
Domestic political turbulence and hesitant clients were cited as major obstacles, with geopolitical tensions also affecting foreign demand. However, the decline in export orders was the slowest since April.
Manufacturers responded to competitive pressures by cutting prices for the second consecutive month, aligning with a further easing of cost inflation. Employment in the sector rose for the sixth month in a row, albeit at a marginal rate.
The outlook for future output turned pessimistic for the first time since January, with 30% of respondents expecting production to decline over the next year. The survey highlighted concerns over the unstable domestic political situation and a subdued demand outlook.
Despite the challenging environment, backlogs of work increased at the fastest rate since May 2022, the survey showed, while input price inflation eased to its slowest pace in a year.
Last week, official data showed France's economy grew faster than expected in the third quarter as exports surged, due mainly to shipments from the aerospace industry, and as corporate investment perked up despite a political crisis.
(Reporting by Benoit Van Overstraeten; Editing by Toby Chopra)
