- Prior 49.8
- Composite PMI 48.1 vs 48.4 prelim
- Prior 49.8
The negative revisions reaffirm a much softer picture for the French economy to end Q3. Demand conditions continue to suffer and that's weighing on business activity as a whole. The only good point is that firms were driven to lower prices amid competitive pressures but even that was only marginal at best, according to the anecdotal evidence from the survey. HCOB notes that:
"French politics is currently offering little support to businesses, as the ongoing political deadlock adds to uncertainty and undermines confidence. Amidst this turmoil, France’s private sector lost ground: the HCOB France Composite PMI weakened in September, with activity declining in both the manufacturing and service sectors.
"After approaching the growth threshold in August, the headline HCOB Services PMI experienced a renewed decline. The primary driver of this weak performance remains subdued demand conditions, as reflected in lower new order volumes. Domestically, political gridlock is likely contributing to clients hesitating in making spending decisions. Additionally, the challenging geopolitical and trade environment continues to weigh on foreign demand, as evidenced by the decline in export orders.
"Input price inflation continues, whereas output prices decreased in September. This suggests that companies’ margins might shrink, although cost pressures are subdued compared to historical levels. Interestingly, margin compression, coupled with restrained demand, has not yet translated into layoffs, as the employment index still indicated growth."
