Eurozone October PMI Falls to 51.9 as France Contracts, Germany Growth Slows

Eurozone business activity slowed in October as France returned to contraction, dragging the composite purchasing managers' index down to 51.9 from 53.1 in September — a four-month low and below economists' forecast of 52.7. The index remains above the 50 threshold separating growth from contraction. France's composite PMI fell to 48.4 from 51.1, with services at 48.4 and manufacturing at 49.3, an 11-month low. New orders declined at the fastest pace since May, export business fell for an eleventh consecutive month, and firms cut staff for the sixth straight month. French business expectations for the next 12 months dropped to their lowest since April 2020, which S&P Global attributed to political uncertainty ahead of the 2027 presidential election and fiscal concerns. Germany's composite PMI eased to 52.8 from 53.8, though manufacturing rose to 54.2 on export orders and defense and infrastructure spending. The eurozone survey still points to roughly 0.3% quarterly GDP growth, but stubborn inflation may add to speculation of more aggressive ECB tightening. France's CAC 40 fell 0.7% and its 10-year yield reached 5.14% on Thursday, its highest since 2002.