France Private Sector Downturn Softens

2026-07-03 07:56 By Mariene Camarillo 1 min. read

The S&P Global France Composite PMI rose to 47.2 in June 2026 from 44.9 in May, signaling the weakest contraction in private sector activity in three months, although it remained below the 50.0 threshold for a sixth consecutive month.

Business activity continued to decline across both the manufacturing and services sectors, but the pace of contraction eased from May's 28-month low.

New orders also fell for a sixth straight month, though the decline softened to its slowest rate in three months.

Meanwhile, employment edged lower only slightly as manufacturing firms resumed hiring, helping to offset continued job cuts elsewhere.

On the price front, cost pressures eased further but remained historically elevated, suggesting that inflationary pressures continued to weigh on businesses even as they moderated from recent peaks.

Looking ahead, business confidence rebounded from a one-and-a-half-year low, reflecting improved expectations for future activity despite the ongoing downturn.



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France Private Sector Downturn Softens
The S&P Global France Composite PMI rose to 47.2 in June 2026 from 44.9 in May, signaling the weakest contraction in private sector activity in three months, although it remained below the 50.0 threshold for a sixth consecutive month. Business activity continued to decline across both the manufacturing and services sectors, but the pace of contraction eased from May's 28-month low. New orders also fell for a sixth straight month, though the decline softened to its slowest rate in three months. Meanwhile, employment edged lower only slightly as manufacturing firms resumed hiring, helping to offset continued job cuts elsewhere. On the price front, cost pressures eased further but remained historically elevated, suggesting that inflationary pressures continued to weigh on businesses even as they moderated from recent peaks. Looking ahead, business confidence rebounded from a one-and-a-half-year low, reflecting improved expectations for future activity despite the ongoing downturn.
2026-07-03
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.
2026-06-23
French Private Sector Activity Contracts the Most Since 2024
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.
2026-06-03