France’s private sector drops at steepest pace since Jan.

France’s private sector continued to contract in October, according to the latest HCOB PMI survey, marking the sharpest decline in business activity since January.

Both manufacturers and service providers reported lower output, driven by a significant drop in new order inflows, which fell at the steepest pace this year. Sales to foreign clients declined at their fastest rate since May 2020, reflecting weak export demand.

The headline HCOB Flash France Composite PMI Output Index fell to 47.3, down from 48.6 in September, indicating a second consecutive month of contraction.

Employment also decreased marginally, marking the first job cuts in both manufacturing and services in nearly four years, as firms grappled with declining business confidence and lowered growth expectations.

Despite the downturn, cost pressures eased, with input price inflation hitting a 47-month low. Output prices rose modestly in October after remaining unchanged in September.