French Private Sector Performance Surprises on the Downside

2026-05-21 07:37 By Luisa Carvalho 1 min. read

The S&P Global France Composite PMI fell sharply to 43.5 in May 2026 from 47.6 in April and well below market forecasts of 47.7, according to flash estimates.

The latest data showed France’s private sector contracted for a fifth consecutive month and at its steepest pace since November 2020, driven by a faster downturn in services and renewed weakness in manufacturing.

Total new orders fell at the sharpest rate since late 2020, as the demand environment deteriorated considerably amid fuel and energy cost pressures linked to the Middle East conflict.

At the same time, employment recorded its sharpest drop since February last year.

Inflationary pressures also intensified, with input costs and output charges rising at their fastest pace in at least three years.

Finally, firms turned pessimistic on the 12-month outlook for the first time since November 2024, with sentiment dropping to its weakest since the onset of the COVID-19 pandemic, amid rising prices and geopolitical uncertainty.



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