03.11.202509:07:58UTC+00French Manufacturing Downturn Softer Than Expected

The HCOB Manufacturing PMI for France increased to 48.8 in October 2025, up from 48.2 in September, surpassing the preliminary estimates of 48.3. This suggests that the manufacturing sector continues to contract, albeit less sharply. Both production and new orders saw further declines, extending a downturn now nearing three and a half years. Political uncertainties and restrained client spending have adversely affected demand. Although export orders decreased as well, the decline was at its slowest rate in six months, due to reduced demand from Western Europe, Asia, and the Middle East. In response, manufacturers scaled back on purchasing volumes and reduced their inventories of both inputs and finished goods. Delivery times increased for the sixteenth consecutive month. Employment figures rose for the sixth month, driven primarily by temporary employment. Cost pressures eased as input prices increased at the slowest rate observed in a year, while intense competition prompted further price reductions. Finally, business confidence shifted to a pessimistic outlook for the first time since January.