France October final manufacturing PMI 44.5 vs 44.5 prelim

• Prior 44.6

No change to the initial estimate as the French manufacturing sector stays in contraction territory. New orders observed an accelerated pace of decline with employment conditions also starting to be hit harder. The latter will be a concern to watch if it becomes more widespread in the months ahead, and not just for France. HCOB notes that:

“The French manufacturing sector remains mired in a deep crisis. The HCOB Manufacturing PMI for October remains firmly
in contraction territory at 44.5 points, with production levels sinking at their fastest pace since January. Producers of
intermediate and capital goods reported declining volumes, while only the consumer goods sector showed a slight uptick.
This limited strength in consumer goods offers scant relief, as broader industrial performance continues to slide, highlighting
the ongoing strain on French manufacturing.

“Some relief on the pricing front came as French industrial firms are encouraged by an easing in input costs in October.
Reduced price pressures largely stem from weak demand dynamics, which are also driving down output prices, albeit only
fractionally. As a result, manufacturers are finding some breathing room amid the broader economic slowdown, though a
sustained demand upturn remains crucial for a meaningful recovery.

“The outlook remains bleak, with no sign of an upward trend on the horizon. The indexes for order volumes, particularly from
international clients, have fallen to troubling levels. Reports indicate that geopolitical tensions and a slowing global economy
are severely impacting international sales. On the domestic front, cautious consumer spending and the struggling
construction sector are further dampening demand. In response, companies are scaling back their workforces and are
growing increasingly pessimistic about the year ahead.”

This article was written by Justin Low at www.forexlive.com.