2025-11-03 08:50:00
- Prior was 48.2
- Full report
Key findings:
- Factory output falls markedly as new orders decrease again
- Manufacturers anticipate lower production levels over the next 12 months
- Competitive pressures drive further discounting of prices charged
Comment:
Commenting on the PMI data, Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, said:
“The ongoing political crisis continues to act as a drag on the French economy, fuelling uncertainty across the country’s
business landscape. The HCOB Manufacturing PMI remains below the growth threshold, indicating that France’s
manufacturing sector remains stuck in contraction. This ongoing trend is underscored by the fact that output declined in all
main manufacturing sub-sectors.
“French manufacturers are facing the future with a sense of pessimism. Of the 30% of panellists that expect output to
decline over the next year, political instability and persistently weak demand were cited as key concerns. This gloomy
outlook is mirrored in October’s weak order situation, with firms pointing to domestic political turbulence, hesitant clients and
a challenging market environment as major obstacles. On the international front, geopolitical tensions have dampened
foreign demand, with some respondents reporting fewer orders from Asia and the Middle East. Nevertheless, the pace of
decline in export orders was the slowest since April.
“Manufacturers are facing mounting competitive pressures, prompting them to cut prices for the second month in a row. This
move aligns with a further easing of cost inflation, with input prices edging up marginally. Inventories were once again scaled
back, driven by the lower production volumes and a bleak outlook for future demand. In line with this trend, stocks of
purchases were also reduced further.”
France Manufacturing PMI
