FX.co ★ French Private Sector Suffers Setback in September

In September 2025, the HCOB Flash Composite PMI for France decreased to 48.4, down from 49.8 in August, falling short of analysts' expectations of 49.7. This marks the 13th consecutive month of contraction, with private sector activity declining at its fastest pace in five months. Both the manufacturing sector (PMI at 48.1, a seven-month low, compared to 50.4 in August) and the service sector (PMI at 48.9 compared to 49.8) experienced significant output declines, with manufacturing particularly hampered by weak demand. New orders continued their 16-month downward trend, indicating diminished client demand stemming from domestic political uncertainty. While export conditions remained challenging, new export orders decreased at their slowest rate in three months. Despite the subdued environment, net employment saw a slight uptick. On the pricing front, the rate of input price inflation reached a five-month low, leading to the first price reductions since May. Lastly, overall business confidence decreased slightly since August, remaining well below its historical average.