France Private Sector Activity Returns to Contraction

2026-10-23 07:25 By Mariene Camarillo 1 min. read

France’s S&P Global Composite PMI fell to 48.4 in October 2026 from 51.1 in September, largely missing market forecasts of 50.5, flash estimates showed.

This marked a return to contraction after September’s rebound, with activity at a four-month low.

New orders fell the most since May as domestic and global uncertainty prompted customers to delay projects and curb spending.

Export orders also continued to shrink for an eleventh consecutive month.

Moreover, employment declined for a sixth straight month as companies reduced headcounts through non-replacement of departing workers and contract non-renewals.

On the price front, overall inflationary pressures eased as slower services inflation offset rising manufacturing costs, with supply-chain disruptions driving the sharpest increase in factory selling prices since May.

Looking ahead, business confidence deteriorated to its lowest level since April 2020, with firms citing concerns over next year’s elections and public finances.



News Stream
France Private Sector Activity Returns to Contraction
France’s S&P Global Composite PMI fell to 48.4 in October 2026 from 51.1 in September, largely missing market forecasts of 50.5, flash estimates showed. This marked a return to contraction after September’s rebound, with activity at a four-month low. New orders fell the most since May as domestic and global uncertainty prompted customers to delay projects and curb spending. Export orders also continued to shrink for an eleventh consecutive month. Moreover, employment declined for a sixth straight month as companies reduced headcounts through non-replacement of departing workers and contract non-renewals. On the price front, overall inflationary pressures eased as slower services inflation offset rising manufacturing costs, with supply-chain disruptions driving the sharpest increase in factory selling prices since May. Looking ahead, business confidence deteriorated to its lowest level since April 2020, with firms citing concerns over next year’s elections and public finances.
2026-10-23
French Private Sector Activity Rebounds in September
The S&P Global France Composite PMI rose to 51.1 in September 2026 from 48.5 in August but was revised slightly down from a preliminary estimate of 51.2. The reading signalled a return to growth in private-sector activity after contracting for eight consecutive months, largely driven by a rebound in services, where the PMI rose to 51.2 from 48.0 in August, also marking the sector’s first expansion since December 2025. Meanwhile, manufacturing growth slowed, with the PMI falling to 50.6 from 51.1. Output expanded despite weak demand and employment growth. However, new orders and workforce numbers both declined marginally during the month. Business expectations also softened, reflecting weaker sentiment among services firms. At the same time, price pressures intensified amid elevated global oil and gas prices.
2026-10-05
French Private Sector Performs Better than Expected
The S&P Global France Composite PMI rose to 51.2 in September 2026 from 48.5 in August and better than market forecasts of 48.7, flash estimates showed. The data showed the country's private sector returning to expansion at its strongest pace in more than two years, bringing an end to a sustained period of contraction since the start of the year. The upturn was led by a rebound in services, where activity expanded at its fastest pace in seven months. Meanwhile, manufacturing output growth slowed and remained marginal. Demand improved slightly, with new orders rising for the first time in ten months, albeit marginally. Export orders continued to fall, but the decline was the weakest recorded so far this year. Meanwhile, employment decreased modestly and for a fifth straight month. Inflationary pressures intensified, with input and output prices rising at faster rates for the first time since May. Business confidence also deteriorated, reaching its lowest level since May.
2026-09-23