French Private Sector Activity Shrinks the Most in 5 Months

2026-03-24 08:39 By Luisa Carvalho 1 min. read

The S&P Global France Composite PMI fell to 48.3 in March 2026 from 49.9 in February, worse than market forecasts of 49.3, flash estimates showed.

The reading signaled the quickest fall in private sector business activity since last October.

The services sector declined further (PMI at a five-month low of 48.3 vs 49.6 in February), while manufacturing output contracted for the first time this year (48.5 vs 51.6).

Overall new business volumes shrank at the sharpest rate since July 2025, as underlying weak demand was further exacerbated by the Middle East war, rising geopolitical uncertainty, and client caution ahead of local elections.

Exports fell at the steepest pace in 15 months, and employment edged down slightly.

Cost pressures rose notably, with input prices increasing at the fastest pace since November 2023, while prices charged rose only marginally.

Business confidence weakened sharply, reflecting concerns over the impact of the Iran war on demand and inflation.



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