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.



News Stream
French Private Sector Activity Rebounds in September
The S&P Global France Composite PMI rose to 51.1 in September 2026 from 48.5 in August but was revised slightly down from a preliminary estimate of 51.2. The reading signalled a return to growth in private-sector activity after contracting for eight consecutive months, largely driven by a rebound in services, where the PMI rose to 51.2 from 48.0 in August, also marking the sector’s first expansion since December 2025. Meanwhile, manufacturing growth slowed, with the PMI falling to 50.6 from 51.1. Output expanded despite weak demand and employment growth. However, new orders and workforce numbers both declined marginally during the month. Business expectations also softened, reflecting weaker sentiment among services firms. At the same time, price pressures intensified amid elevated global oil and gas prices.
2026-10-05
French Private Sector Performs Better than Expected
The S&P Global France Composite PMI rose to 51.2 in September 2026 from 48.5 in August and better than market forecasts of 48.7, flash estimates showed. The data showed the country's private sector returning to expansion at its strongest pace in more than two years, bringing an end to a sustained period of contraction since the start of the year. The upturn was led by a rebound in services, where activity expanded at its fastest pace in seven months. Meanwhile, manufacturing output growth slowed and remained marginal. Demand improved slightly, with new orders rising for the first time in ten months, albeit marginally. Export orders continued to fall, but the decline was the weakest recorded so far this year. Meanwhile, employment decreased modestly and for a fifth straight month. Inflationary pressures intensified, with input and output prices rising at faster rates for the first time since May. Business confidence also deteriorated, reaching its lowest level since May.
2026-09-23
French Private Sector Downturn Deeper After Revision
The HCOB France Composite PMI for August 2026 was revised down to 48.5 from a flash estimate of 48.8, and below July's 49.4. The data confirmed an eighth consecutive month of contraction, with the pace of decline quickening from July. The downturn remained entirely concentrated in services, as manufacturing output posted a marginal increase in August. Demand, however, stayed weak across the board, resulting in lower total new orders and a sharper fall in backlogs. Employment declined again, while easing input cost pressures, which reached a six-month low, failed to translate into lower output price inflation. Latstly, business confidence slipped for the first time since May.
2026-09-03