French Private Sector Contracts the Most in Over a Year

The S&P Global France Composite PMI was unrevised at 47.6 in April 2026, down from 48.8 in March, indicating a fourth consecutive month of contraction in France’s private sector and the sharpest downturn since February 2025. Services led April’s contraction, with a sharper decline, while manufacturing activity rebounded. Private sector output shrank amid the quickest fall in new orders since April 2025. Meanwhile, employment grew, reflecting service sector hiring. Input price inflation accelerated to a three-year high, with a marked rise in factory-gate prices pushing output inflation to its strongest level in 20 months.

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 February 2025. 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.