French manufacturing back in contraction in October, PMI shows

PARIS, Nov 2 (Reuters) - ‌France's manufacturing ​sector ​slipped back into contraction in October after expanding for two consecutive months, as new orders ‌fell at the fastest rate since July ⁠2025 and price pressures rose, a business survey showed on ‌Monday.

• The S&P Global France ‌Manufacturing Purchasing Managers' Index (PMI) fell to 49.5 points in October from 50.6 in September

• Any figure ​above 50 marks an expansion in activity, while below 50 shows a contraction

• The final October ⁠manufacturing PMI was nevertheless slightly stronger than the flash reading of 49.3 ​points

• S&P Global said there had been a drop in factory output volumes as ​new orders fell and that ‌this deterioration in demand prompted firms to retrench, with purchasing activity and employment both ⁠lowered

• It added that PMI data pointed to a sharp pick-up in inflation across France's manufacturing economy. Firms surveyed ⁠widely mentioned increased costs relating to raw materials, fuel and ​energy

• "French manufacturing is unable to build any real momentum. Demand conditions deteriorated sharply in October, stacking the odds against a ‌turnaround in the near-term," said Joe Hayes, senior principal economist at S&P Global Market ‌Intelligence

• "Sharply rising cost pressures due to continued supply-related ⁠disruptions and high energy ‌prices limit firms' ​ability to price their goods more competitively," he added

(Reporting by Dominique Vidalon; Editing by Hugh ‌Lawson)

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