France Factory Activity Remains in Contraction

The S&P Global France Manufacturing PMI was revised slightly up to 49.5 in October 2026 from 49.3 in the preliminary estimate but remained below September's 50.6. The data pointed to a renewed contraction in the country's manufacturing activity, following two consecutive months of expansion, marking the steepest decline since July last year. New orders fell at the fastest pace since July 2025 and output shrank for the first time in three months, which prompted firms to reduce purchasing activity and employment. Firms also faced deteriorating supply conditions, with delivery times increasing significantly, alongside mounting cost pressures. Rising costs of raw materials, energy and other inputs pushed input price inflation to a four-month high, leading firms to raise selling prices at the fastest pace since May.

The S&P Global France Manufacturing PMI fell to 49.3 in October 2026 from 50.6 in September, slipping back into contraction after two months of expansion and reaching an 11-month low, preliminary estimates showed. The reading also came below market expectations of 50.5, as the manufacturing output index declined to 48.5 from 50.3, signaling a renewed contraction in production. Weaker demand and heightened economic uncertainty weighed on activity, while worsening supply-chain conditions drove manufacturing price pressures higher.

The S&P Global France Manufacturing PMI eased to 50.6 in September 2026 from 51.1 in August, surpassing the preliminary estimate of 50.3. Factory production increased for a second straight month, but only marginally as falling demand weighed on output. New orders declined for a fifth consecutive month, although the pace of contraction eased to its slowest in the current downturn, while export orders fell for a ninth month. Purchasing activity and inventories also decreased as firms sought to align stocks with order books and protect cash flow. Employment edged lower after a brief period of growth, while supplier delivery times lengthened sharply amid shortages and disruptions related to the Middle East war. Meanwhile, input costs and output prices rose at faster rates, marking the first acceleration since May, while business confidence remained fragile amid inflation, higher interest rates, overseas competition, and election uncertainty.