France’s business survey signals renewed contraction after one month of growth, while rising factory costs complicate the European Central Bank’s next interest-rate decision.
The eurozone’s October business surveys signalled a sharper slowdown than economists expected, while France returned to contraction after just one month of growth. Germany continued to expand, but more slowly than in September, according to figures reported by Euronews on 23 October.
The composite purchasing managers’ index (PMI) is a survey indicator covering manufacturing and services. A reading above 50 signals expansion; below 50 signals contraction. The eurozone reading fell to its lowest level in four months, but remained above that dividing line.
| Economy | September | October | Economists’ October forecast |
|---|---|---|---|
| Eurozone | 53.1 | 51.9 | 52.7 |
| France | 51.1 | 48.4 | 50.5 |
| Germany | 53.8 | 52.8 | 53.3 |
French companies said customers were postponing projects and spending decisions. New orders fell at their fastest pace since May, while export business declined for an eleventh consecutive month.
The satellite operator expects access to more than twice OneWeb’s current bandwidth in return for spending in 2027–2034, with initial IRIS² services expected from 2030.
3 min
Businesses reduced staffing for a sixth month, mainly by leaving vacancies unfilled and allowing temporary contracts to expire. Expectations for business activity over the next 12 months fell to their lowest level since April 2020.
Joe Hayes, senior principal economist at S&P Global Market Intelligence, linked the deterioration in confidence to firms’ concerns about France’s 2027 presidential election and its fiscal situation.
Germany’s manufacturing PMI rose to 54.2, its highest reading in two months, supported by export orders and government spending on defence and infrastructure. Services weakened as customers delayed decisions and held back spending amid tighter budgets.
German manufacturers also reported their fastest increase in input costs—the costs of materials and other supplies used in production—since May, particularly for oil, raw materials and electronic components. Across the eurozone, manufacturers reported higher energy, fuel and transport prices, while supplier delivery times lengthened by the most in four months.
Analysis
Chris Williamson, chief business economist at S&P Global Market Intelligence, said the survey still pointed to quarterly growth of around 0.3% in gross domestic product (GDP), the economy’s total output. That is a survey-based estimate, not a measured GDP result.
Williamson said higher interest rates were already dampening demand. He expected persistent inflation and the survey findings to fuel speculation about more aggressive tightening by the European Central Bank (ECB)—raising interest rates to restrain inflation. That was his assessment of policy expectations, not an ECB decision.
The ECB still faces a decision on how much further to raise borrowing costs to contain inflation without doing more damage to growth. Any further increase would make borrowing more expensive for businesses and households while demand is already weakening.
Microsoft reported $33.17 billion in Azure revenue and a 22% year-over-year decline in Windows OEM and devices revenue. Its reporting overhaul brings quarterly disclosure of Azure’s dollar contribution.
2 min
The US wireless carrier’s third-quarter service revenue rose 6% to $19.4 billion as it raised its expectations for the full year.
1 min
