French manufacturing back in contraction in October, PMI shows

French Manufacturing PMI Drops Below 50 as Sector Contracts in October

October 2025 Manufacturing PMI Report and Economic Implications

PARIS, Nov 2 (Reuters) - France's manufacturing sector slipped back into contraction in October after expanding for two consecutive months, as new orders fell at the fastest rate since July 2025 and price pressures rose, a business survey showed on Monday.

Key PMI Figures and Activity Levels

• The S&P Global France Manufacturing Purchasing Managers' Index (PMI) fell to 49.5 points in October from 50.6 in September

Understanding the PMI Threshold

• Any figure above 50 marks an expansion in activity, while below 50 shows a contraction

Comparison with Flash Reading

• The final October manufacturing PMI was nevertheless slightly stronger than the flash reading of 49.3 points

Factors Contributing to the Contraction

Decline in Output and Orders

• S&P Global said there had been a drop in factory output volumes as new orders fell and that this deterioration in demand prompted firms to retrench, with purchasing activity and employment both lowered

Rising Inflationary Pressures

• It added that PMI data pointed to a sharp pick-up in inflation across France's manufacturing economy. Firms surveyed widely mentioned increased costs relating to raw materials, fuel and energy

Expert Commentary

Analysis from S&P Global

• "French manufacturing is unable to build any real momentum. Demand conditions deteriorated sharply in October, stacking the odds against a turnaround in the near-term," said Joe Hayes, senior principal economist at S&P Global Market Intelligence

Impact of Cost Pressures

• "Sharply rising cost pressures due to continued supply-related disruptions and high energy prices limit firms' ability to price their goods more competitively," he added

(Reporting by Dominique Vidalon; Editing by Hugh Lawson)