French Business Activity Unexpectedly Contracts in October as PMI Falls to 48.4

French business activity unexpectedly contracted in October, reversing September's growth, an S&P Global survey showed Friday. The S&P Global French flash services PMI fell to 48.4 points from 51.2 in September, below a Reuters poll forecast of 50.7. A reading below 50 indicates contraction. The flash manufacturing PMI dropped to 49.3 from 50.6, missing a forecast of 50.5, while the composite flash PMI fell to 48.4 from 51.1, also below the 50.5 forecast. Surveyed businesses cited heightened political uncertainty and economic pressures, marking the sharpest decline in demand for French goods and services since May. French government borrowing costs have jumped in recent weeks on investor concerns about the country's ability to repair its finances, while street protests have raised political tensions ahead of a spring presidential election. Joe Hayes, senior principal economist at S&P Global Market Intelligence, said the survey's sentiment indicator sank to a six-and-a-half-year low, reflecting concerns over a highly uncertain 2027 presidential election and France's fiscal situation.