French Private Sector Contraction Deepens

The S&P Global France Composite PMI fell to 47.6 in April 2026 from 48.8 in March, undershooting market expectations of 48.6, according to flash estimates. The latest reading signals a fourth consecutive month of contraction in France’s private sector and the sharpest downturn since last October. The decline was driven by a marked weakening in services activity, with the PMI dropping to 46.5 from 48.8, while manufacturing provided a bright spot, with output rebounding and posting its strongest growth in over four years. Meanwhile, private sector employment grew, led by services, though the increase was only marginal. Cost pressures continued to build, with input price inflation accelerating to a three-year high. Pass-through remained contained, though output price inflation still accelerated to its fastest since August 2024. Business confidence fell to its joint-lowest level since July 2025, as higher uncertainty and customer caution dampened sentiment.

The S&P Global France Composite PMI came in at 48.8 in March, revised higher from the preliminary 48.3 but down from 49.9 in February, signaling the fastest contraction in private sector activity since October. The decline was driven by a sharper fall in new orders, pointing to continued weakness in demand across the economy. While output prices continued to rise, the pace of increase remained subdued and historically weak, reflecting limited pricing power among firms. Meanwhile, cost pressures intensified, with input prices across the private sector rising at the fastest rate since November 2023, largely driven by a notable pickup in inflation within the manufacturing sector.

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.