French Private Sector Contracts Sharply in October, Weighing on Eurozone Activity
| Pair | Now | Since publish |
|---|---|---|
| EURUSD | — | — |
| EURGBP | — | — |
| EURJPY | — | — |
- French private sector contracted unexpectedly in October.
- Composite PMI fell to 48.4, below 50.0 contraction threshold.
- Political uncertainty and fiscal tensions cited as key factors.
- Contributed to broader Eurozone economic slowdown.
France’s private sector experienced an unexpected contraction in October, reversing September’s brief rebound. The flash composite output index fell to a four-month low of 48.4, significantly below economists’ forecast of 50.5 and the prior month’s 51.1. Both the services PMI, at 48.4, and manufacturing PMI, at 49.3, also registered below the 50.0 contraction threshold and market expectations. This downturn, marking the sharpest decline in demand since May, is attributed to heightened political uncertainty, fiscal tensions, and tightening financial conditions within France. The slowdown in France, the Euro area’s second-largest economy, contributed to a broader, more-than-expected deceleration in the overall euro area’s private sector activity.