France's private sector experienced another contraction in October, with both manufacturing and service sectors reporting decreased output, according to S&P Global's survey data released on Thursday.
The flash composite output index dropped unexpectedly to 47.3 in October, marking a nine-month low, down from 48.6 in September. This represents the lowest score recorded since the beginning of this year, falling short of the anticipated level of 49.0.
The index remained below the 50.0 no-change threshold for the second consecutive month, underscoring a continued decline in the private sector's activity.
"Despite the early elections held four months ago, the economic outlook remains clouded by uncertainty," noted Hamburg Commercial Bank economist Tariq Kamal Chaudhry. "The government in Paris faces increasing pressure to implement urgent measures that stabilize the economy and address fiscal imbalances," Chaudhry added.
The flash manufacturing Purchasing Managers' Index registered at 44.5, slightly down from 44.6 in the previous month, with predictions set at 44.9.
In the services sector, the flash PMI fell to a seven-month low of 48.3, a decrease from 49.6 in the prior month, thereby also missing economists' forecast of 49.8.
