French Private Sector Downturn Softens in June

The S&P Global France Composite PMI came in at 47.6 in June 2026, up from 44.9 in May and better than market forecasts of 46, flash estimates showed. The data indicated the sixth consecutive month of downturn in the country's private sector, albeit less pronounced than in May. Output continued to decline in both the manufacturing and services sectors during June, but at a softer pace than in the previous month, aided by modest improvements in client activity. In terms of prices, cost pressures moderated for the first time since February, but inflation continued to run well above pre–Middle East conflict levels. Business activity expectations strengthened in June, ending a five-month decline in sentiment, though overall confidence remained weak due to high fuel costs, Middle East tensions, and ongoing uncertainty.

The S&P Global France Composite PMI fell to 44.9 in May 2026 from 47.6 in April, marking a 28-month low and signalling the fastest contraction in private sector activity since early 2024. The decline reflected a sharp deterioration in demand conditions, with total new business falling at the steepest pace in a year-and-a-half amid weakening economic momentum. Labour market conditions also worsened, as private sector employment declined at the fastest rate in 15 months. At the same time, inflationary pressures intensified further, with input costs and output charges rising at their fastest rates in 38 and 36 months respectively, driven by persistent cost pressures across manufacturing and services. Looking ahead, business sentiment fell to a one-year low and was only slightly positive, as firms cited inflation and uncertainty from the Middle East conflict. Expectations for future activity continued to weaken, extending a decline in confidence that began earlier in the year.

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.