France October ultimate companies PMI 49.2 vs 48.three prelim

• Prior 49.6
• Composite PMI 48.1 vs 47.three prelim
• Prior 48.6

The revisions are optimistic however nonetheless marks a drop from September. The small print reveal the sharpest drop in new enterprise since January with progress expectations additionally declining markedly in comparison with the month earlier than. Price pressures had been subdued however costs charged by French service companies had been nonetheless on the upper aspect although. HCOB notes that:

“France’s fourth quarter is off to a poor begin, with the companies sector persevering with to contract. The HCOB PMI dipped to 49.2
in October, marking its lowest level since March. Whereas GDP progress shocked on the upside in Q3 with a zero.four% rise over the
earlier quarter, it’s now clear that financial momentum is waning. The GDP uptick was largely pushed by one-off results
from the Olympic Video games in Paris, as proven by the HCOB PMIs, and as demand fades, French service suppliers — and the
wider economic system — will battle to discover a new progress catalyst.

“Service suppliers in France are struggling to raise their prices. Inflationary pressures are benign in France, in response to the
HCOB PMIs, and that is additional bolstered by a notable drop in France’s Shopper Value Index in September — annual
inflation fell to 1.1% total and 1.four% for core inflation, properly beneath the ECB’s goal. Nonetheless, with working prices nonetheless rising
a lot quicker than promoting costs, this is without doubt one of the ongoing challenges for the surveyed companies, intensifying the pressure on
the sector.

“Nonetheless, the outlook for French service suppliers is cautiously optimistic regardless of progress expectations weakening in
October. Present circumstances stay difficult, with each home and worldwide orders persevering with to say no, alongside
a hiring freeze. Nonetheless, there are modest indicators of encouragement in future enterprise exercise, although the pattern is weaker
than the earlier month and stays properly beneath the historic common. Many corporations report that intensified competitors
and a shrinking buyer base are complicating restoration efforts.”

This text was written by Justin Low at www.ubaidahsan.com.



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