France's trade deficit worsens in October
Trade Balance Overview: France's trade balance slightly worsened by €0.1 billion to -€5.2 billion in October 2025, with stable imports at €57 billion and a minor decrease in exports.
Manufactured Goods Impact: The manufactured goods balance deteriorated by €0.3 billion, primarily due to a decline in the capital goods balance by €0.2 billion and a smaller drop in the intermediate goods balance by €0.1 billion.
Consumer Goods Stability: The consumer goods balance remained unchanged at -€0.3 billion, indicating no significant shifts in this sector during the reporting period.
Economic Context: The article also references broader economic concerns in France, including the resignation of the Prime Minister and its implications for the economy, alongside the performance of European markets.
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HCOB Flash France Composite PMI: The Composite PMI for France in December was 50.1, slightly down from 50.4 in November, indicating a stable but softer growth compared to the previous month.
Sector Performance: The Services PMI decreased to 50.2 from 51.4, marking a two-month low, while the Manufacturing PMI rose to 50.6 from 47.8, reaching a 40-month high.
Economic Outlook: The overall business conditions in the French private sector are largely static, with manufacturing stabilizing and services losing momentum, reflecting ongoing economic uncertainty.
Additional Context: The article also mentions broader economic factors, including the resignation of the French Prime Minister and rising industrial production in the Euro Area.
France Requests Delay: France has requested a postponement of the EU vote on the Mercosur free-trade agreement due to concerns over inadequate protections for European agriculture.
Pending Approval: The trade deal was set for final approval in Brussels, but the European Parliament has not ratified proposed safeguards, leading to uncertainty about their effectiveness.
Postponement Timeline: French Prime Minister Sebastien Lecornu is advocating for a delay until early 2026, which could jeopardize the agreement if not signed by the end of the year.
Opposition from Other States: There is opposition from Poland and Hungary regarding the deal, but blocking it would require additional support from other member states like Italy.
Trade Balance Overview: France's trade balance slightly worsened by €0.1 billion to -€5.2 billion in October 2025, with stable imports at €57 billion and a minor decrease in exports.
Manufactured Goods Impact: The manufactured goods balance deteriorated by €0.3 billion, primarily due to a decline in the capital goods balance by €0.2 billion and a smaller drop in the intermediate goods balance by €0.1 billion.
Consumer Goods Stability: The consumer goods balance remained unchanged at -€0.3 billion, indicating no significant shifts in this sector during the reporting period.
Economic Context: The article also references broader economic concerns in France, including the resignation of the Prime Minister and its implications for the economy, alongside the performance of European markets.
HCOB France Services PMI: The HCOB France Services PMI Business Activity Index rose to 51.4 in November, marking a 15-month high and indicating increased business activity after 14 months of decline.
Composite PMI Growth: The HCOB France Composite PMI reached 50.4 in November, up from 47.7 in October, signaling expansion for the first time since August 2024, driven by stronger service sector activity despite a decline in manufacturing output.
Key Economic Insights: Demand for French services has increased, supporting growth in activity; however, employment has decreased due to weak year-ahead expectations, and competitive pressures are limiting pricing power for companies.
Broader Economic Context: The article also touches on the cautious sentiment in European markets, the resignation of the French Prime Minister impacting the economy, and a decline in Eurozone manufacturing PMI, despite expectations for future production growth.
Manufacturing PMI Decline: France's Manufacturing PMI fell to 47.80 in November from 48.80 in October, indicating a contraction in the manufacturing sector.
Political Impact on Economy: The resignation of the French Prime Minister is viewed as a negative development for the economy.
Economic Growth: France's economy grew by 0.5% in the third quarter, with inflation expected to remain stable.
Investment Insights: Seeking Alpha provided a Quant Rating for the iShares MSCI France ETF, along with a dividend scorecard.
GDP Growth: France's GDP grew by 0.50% in Q3 compared to the previous quarter and 0.90% year-over-year, aligning with estimates.
Inflation Rate: The inflation rate in France held steady at 0.90% in November, which is below the expected 1%, with a slight decrease in the Consumer Price Index by 0.10% from the previous month.






