EL7.AI
Macro EconomyMedium•4 November 2026•
2 min read

France Services PMI Falls to 48.4 in October as Demand Slumps

Key Facts

1France’s preliminary services index fell to 48.4 points in October, from 51.2 in September, below the forecast of 50.7.
2France’s preliminary composite PMI fell to 48.4 points from 51.1, against a forecast of 50.5.
3French companies’ expectations for activity over the next twelve months fell to their lowest in six and a half years.
4Germany’s manufacturing index rose to 54.2 points in October from 53.9 in September.

France’s preliminary services Purchasing Managers’ Index fell to 48.4 points in October, from 51.2 in September, according to data Reuters attributed to S&P Global. The reading was below the Reuters poll forecast of 50.7 points. The composite index, which combines services and manufacturing data, also fell to 48.4 points from 51.1 in September, against forecasts of 50.5. Both readings indicate a return of French activity to contraction after September’s rebound. Companies said demand for goods and services recorded its sharpest decline since May.

Companies linked the drop in demand to rising political uncertainty and economic pressures. Joe Hayes of S&P Global said, "The rebound in economic activity in September was short-lived," pointing to a rapid tightening of financial conditions and mounting political pressures in France during October. Companies’ expectations for activity over the next twelve months fell to their lowest in six and a half years. The expectations reading reflected companies’ concerns about the presidential election scheduled for 2027. Companies also expressed concern about the overall fiscal position, Reuters reported.

The French reading comes amid divergence between services and manufacturing in Germany, according to the preliminary estimate of October indicators published on October 23. German services activity remained in growth territory for a second month, but slowed to 51.7 points from 52.9 in September. Services companies said demand was held back by delayed customer decisions and tight budgets. By contrast, Germany’s manufacturing index rose to 54.2 points, its highest in two months, from 53.9 in September. The German composite index fell to 52.8 points from 53.8, below economists’ forecasts of 53.3.

In France, price pressures remained elevated in October, according to S&P Global Market Intelligence. The firm said price increases were among the largest since early 2023, and that the selling-price index points to inflation remaining elevated and above the European Central Bank’s 2% target over the coming months. On output, the latest available data showed French industrial production fell 0.3% month on month in August, after declining 0.6% in July. France’s National Institute of Statistics scheduled the release of September industrial production data for November 5, 2026. The release follows October’s activity reading, which showed declines in French services and the private sector.