French Private Sector Broadly Stagnant in February

2026-02-20 08:40 By Luisa Carvalho 1 min. read

The HCOB France Composite PMI rose to 49.9 in February 2026 from 49.1 in January and slightly above market forecasts of 49.7, flash estimates showed.

The reading indicates that French business activity was largely flat during the month, amid ongoing weak demand conditions.

Services activity remained in contraction territory (PMI at 49.6 vs 48.4 in January), in contrast to continued expansion in manufacturing output (51.6 vs 52.1), despite growth slowing from January’s near four-year high.

New business inflows fell for the third month running at the fastest pace since July, with exports remaining a key drag on total order books in February, registering their steepest decline since December 2024.

At the same time, hiring activity stalled after two months of growth spanning the New Year.

As for prices, input cost inflation slowed to a four-month low, while output charges were trimmed marginally.

Firms’ confidence for the year ahead weakened slightly but remained above the 2025 average.



News Stream
French Private Sector Broadly Stagnant in February
The HCOB France Composite PMI rose to 49.9 in February 2026 from 49.1 in January and slightly above market forecasts of 49.7, flash estimates showed. The reading indicates that French business activity was largely flat during the month, amid ongoing weak demand conditions. Services activity remained in contraction territory (PMI at 49.6 vs 48.4 in January), in contrast to continued expansion in manufacturing output (51.6 vs 52.1), despite growth slowing from January’s near four-year high. New business inflows fell for the third month running at the fastest pace since July, with exports remaining a key drag on total order books in February, registering their steepest decline since December 2024. At the same time, hiring activity stalled after two months of growth spanning the New Year. As for prices, input cost inflation slowed to a four-month low, while output charges were trimmed marginally. Firms’ confidence for the year ahead weakened slightly but remained above the 2025 average.
2026-02-20
French Private Sector Returns to Contraction
The HCOB France Composite PMI for January 2026 was revised higher to 49.1 from a flash estimate of 48.6, but remained below December’s 50.0. The latest reading pointed to renewed weakness in private sector activity, with the downturn driven mainly by the services sector, where the Business Activity Index slipped from 50.1 in December to 48.4 in January, marking the first contraction since October. Manufacturing showed only tentative signs of stabilization, with capacity pressures rising but overall demand still subdued. New orders across the private sector fell at the fastest pace in six months, while employment recorded only marginal growth. Exports continued to weigh on activity, as overseas demand for services remained in contraction. Meanwhile, input cost inflation edged up to a five-month high, prompting firms to raise output charges modestly. Finally, business confidence improved, with year-ahead growth expectations rising to their strongest level since September 2024.
2026-02-04
French Private Sector Unexpectedly Shrinks
The HCOB France Composite PMI fell to 48.6 in January 2026 from December's 50 and missing market forecasts of 50, flash estimates showed. This pointed to a return to contraction in the country’s private sector for the first time since October last year, following two consecutive months of near stagnation. The services sector weakened notably (PMI at 9-month low of 47.9 vs 50.1 in December), while manufacturing output rebounded modestly (PMI at 51.9 vs 49.7). New business received fell at the fastest pace in six months in January, reflecting subdued demand conditions due to worries about domestic finances and external uncertainties. The rate of job creation edged up to a three-month high but remained marginal. Average prices charged were flat, with input costs rising modestly but still below historical averages. More positively, growth expectations for the next year were the strongest since September 2024, partly reflecting hopes that the budget impasse will be resolved.
2026-01-23