FX.co ★ France Private Sector Activity Returns to Contraction

France’s S&P Global Composite PMI slipped to 48.4 in October 2026 from 51.1 in September, according to flash estimates, falling well short of market expectations of 50.5. This drop signaled a renewed contraction in private-sector activity, reversing September’s brief rebound and bringing output to a four-month low.

New orders recorded their steepest decline since May, as mounting domestic and global uncertainty led clients to postpone projects and rein in spending. Export demand remained weak, with foreign new orders shrinking for the eleventh consecutive month.

Labor market conditions also continued to soften. Employment fell for the sixth month in a row as firms pared back staffing levels, largely through not replacing departing employees and allowing temporary contracts to lapse.

On the price front, overall inflationary pressures eased. Slower price growth in the services sector more than offset rising cost pressures in manufacturing. Nevertheless, ongoing supply-chain disruptions pushed factory selling prices up at the fastest pace since May.

Looking ahead, business sentiment weakened notably, dropping to its lowest point since April 2020. Companies expressed growing concern about the outlook for public finances and the potential impact of next year’s elections on economic conditions.