French Business Activity Shrinks on Budget Trouble and Unrest

French business activity contracted as renewed concerns about the country’s finances triggered a selloff in government bonds, while protests and riots gripped the country. S&P Global’s Composite Purchasing Managers’ Index fell to 48.4 in October from 51.1 in September, dropping below the 50-point threshold that separates growth from contraction. The brief also points to ongoing political and financial stress as a backdrop for weaker sentiment among firms. With bond markets under strain and public unrest ongoing, the PMI decline suggests companies are becoming more cautious about the near-term outlook, with activity weakening rather than expanding.