FX.co ★ French Manufacturing Remains Fragile in October

In October 2025, the HCOB France Manufacturing PMI experienced a slight increase to 48.3, up from 48.2 in September, aligning with market expectations based on preliminary data. Despite reaching a two-month high, this figure continues to indicate contraction, highlighting more pronounced declines in production and new orders. Factors such as sluggish client demand, persistent domestic political uncertainty, and adverse global conditions continue to impact exports. Consequently, manufacturers reduced output prices for the second consecutive month to spur demand, while inflation in input costs eased to its lowest rate in nearly five years as energy and material prices stabilized. Employment saw modest growth, primarily through temporary hires, indicating cautious workforce planning. Looking forward, business confidence fell to its lowest level since mid-year, with numerous firms anticipating further production declines due to political instability and weak external demand.