Firms remain confident that output will increase over the coming year, but the overall level of optimism is at its weakest since October 2015.
Similarly, predictions for profitability, employment and capex have deteriorated since the prior survey period.
Meanwhile, non-staff cost inflation is anticipated to accelerate.
A net balance of +23% of companies expect a rise in business activity over the coming year, down from +26% in June to the lowest since October 2015.
That said, confidence remains elevated compared to both the global (+14%) and developed market (+12%) averages.
Anecdotal evidence suggests that French companies hope that increased volumes of new work will outweigh the negative effects of geopolitical instability and higher raw material prices.
At the sector level, both manufacturers and service providers expect business activity to increase over the coming year.
However, degrees of optimism are weaker in both cases.
Notably, manufacturers are at their least confident since June 2013.
Similar to the trend for business activity, private sector firms in France are less optimistic of a rise in profitability over the next year.
France business activity expectations the net balance of firms forecasting a rise in earnings is back in line with that registered in February, when sentiment had weakened to the lowest since October 2014.
That said, the degree of positivity outstrips both the developed market (+4%) and global (+6%) averages.
The downturn in aggregate sentiment regarding profits in France is driven by both the manufacturing and service sectors.
However, the former is the least confidence of the two, reporting its weakest expectations since June 2014.
October data indicate a further softening in hiring plans across the French private sector.
Although firms expect to increase staff numbers over the coming year, the degree of positivity is the weakest for three years.
That said, expectations for employment remain elevated compared to the eurozone average (+3%).
Meanwhile, overall confidence for an increase in capital expenditure over the next year also prevails in October.
A net balance of companies forsee a rise in investment.
The result represents slightly softer confidence than in June (+14%), however.
Sector data suggest that both manufacturers and service providers have pared back capex plans since June, with the former registering their weakest expectations since October 2016.
Businesses in France expect non-staff costs to keep rising over the coming year.
Moreover, the net balance is up from 15% in June at +18%, although remains below the levels recorded throughout 2018.
At the sector level, the increase in expectations is driven by services firms, while manufacturers anticipate the weakest rise in non-staff expenses since February 2016.
With cost pressures expected to intensify over the coming 12 months, a higher net balance of firms look set to increase their output prices.
The net balance of companies planning to lift average charges (+16%) is the greatest for a year and elevated compared to the eurozone (+12%) and global (+11%) averages. ■