FX.co ★ French Private Sector Activity Drops to 8-Month Low

In October 2025, France's HCOB Composite PMI fell to 46.8 from 48.1 reported in September, according to preliminary data. This signifies the 14th consecutive month of contraction in private sector activity and represents the most significant downturn since February. The decline was primarily driven by a sharper decrease in services output, which dropped to 47.1 from 48.5 in September, although the contraction in the manufacturing sector slightly eased to 48.3 from 48.1. New orders continued to fall, marking nearly a year-and-a-half of declines, with respondents attributing this to reduced client spending due to an unstable domestic political climate. However, there was a positive development as employment rose for the third consecutive month. Regarding pricing, input cost inflation fell to its lowest point since November 2020, while output prices saw a slight increase following a decline in September. Looking forward, French businesses remain optimistic about activity growth over the next 12 months.