France PMI Manufacturing fell from 44.2 to 42.6 in October, hitting a 41-month low. PMI Services improved from 44.4 to 46.1, a 3-month high. PMI Composite rose from 44.1 to 45.3, a 2-month high.
Norman Liebke, Economist at Hamburg Commercial Bank, said: “The French economy is still feeling the heat at the start of the fourth quarter… Our GDP nowcast model, with PMI figures in the mix along with a bunch of other indicators, is pointing to fractional growth in the fourth quarter.
“The services sector is hitting roadblocks… Things are going south in the manufacturing sector, and there is no relief in sight… Price indices are in perilous territory…. Higher inflation rates would put the European Central Bank into a difficult position as it more or less signalled at its last meeting that no further rate hikes will be carried out.”
