Eurozone private-sector growth slowed in October as the flash composite purchasing managers’ index fell to 51.9 from 53.1 in September. France returned to contraction, leaving investors to weigh weaker momentum against higher energy costs.
France stands out
France’s composite index dropped to 48.4 from 51.1, below the 50 threshold separating expansion from contraction. The eurozone aggregate remained above that line, indicating continued growth at a slower pace.
Costs put margins in focus
In his 23 October 2026 analysis, ING’s Netherlands chief economist Bert Colijn argues that the region has remained resilient to expensive energy, while France illustrates its uneven performance. The bank highlights renewed input-cost pressure, particularly in manufacturing, alongside more muted increases in selling prices.
MARKET NEWS view: If costs keep rising faster than companies can adjust selling prices, margins could come under pressure. Revenue growth would then need to be assessed alongside profitability and cash generation.
What investors should watch
ING continues to expect unchanged rates at the European Central Bank’s next meeting. Investors will watch how policymakers balance energy-driven price pressure against softer activity. The bank’s expectation is a forecast; the meeting’s decision has not been announced.
Read our ECB and French bond-market coverage for the policy backdrop.
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