Growth in private sector economic activity in the euro zone continued in October, hitting a 17-month high, despite the gloomy business climate in France linked to political turmoil, data released Friday by S&P Global showed.
The preliminary PMI, calculated from business surveys, stood at 52.2 in October, up from 51.2 in September. This is the tenth consecutive month of expansion in this barometer of economic activity, states a press release from S&P Global. A figure less than 50 indicates a decrease in activity. Above this threshold, it reflects progression. Both services and industry have contributed to this dynamic.
France slows growth in the euro zone
By contrast, the French economy is increasingly acting as a general brake on activity across the eurozone: its activity has declined for the 14th consecutive month and at the highest rate since last February. The outlook for activity has also weakened in the euro area: business confidence has fallen to its lowest level in five months, below its long-term average.
“The weakness of the French economy weighs more and more on the results of the euro zone,” observed Cyrus de la Rubia, chief economist of the German bank HCOB, a partner of this private sector barometer. “The risk of censorship by Sébastien Lecornu’s government, threatened by dissension regarding the 2026 budget, and the climate of uncertainty it generates in the markets contribute greatly to the country’s economic fragility,” he points out.
Source: BFM TV
