France’s private sector unexpectedly contracted as wrangling over the budget prolonged fiscal uncertainty for Europe’s second-largest economy.
S&P Global’s Composite Purchasing Managers’ Index dropped to 46.8 in October from 48.1 the previous month. Analysts polled by Bloomberg had anticipated a small improvement to nearer the 50 mark separating expansion from contraction. The services sector was the main drag, recording its worst performance since February.