France Services PMI Above Forecasts

The HCOB France Services PMI rose to 49.6 in February 2026 from 48.4 in the prior month, coming in above market expectations of 49.2, flash estimates showed. Still, the latest PMI remained in contraction for the second consecutive month, primarily weighed down by subdued customer demand, adverse weather conditions, and ongoing weakness in the construction industry. New business inflows continued to decline, with the pace of contraction accelerating compared to the previous month. Meanwhile, there was a further reduction in backlogs of work, while service providers recorded a modest increase in staffing levels. On the price front, services companies offered the steepest discounts in nine months. Looking ahead, service providers were less optimistic in February, though sentiment remained comfortably above the average level seen in 2025. They said expectations of a pickup in demand were driving their optimism for the months ahead.

The HCOB France Services PMI fell to 48.4 in January 2026, revised upward from the preliminary estimates of 47.9, compared with 50.1 in December. The latest PMI marked a return to contraction since October 2025, reflecting subdued demand, unusually poor weather, and broadly unfavorable economic conditions. New orders fell at its fastest pace in six months, as clients adopted a cautious approach to spending. Meanwhile, service providers showed a modest willingness to hire after two months of stagnation, with workforce numbers increasing slightly to support anticipated activity. On the pricing front, input costs continued to rise, driven by higher product prices and wages. Output prices also accelerated to its highest rate since November 2024, as they chose to pass on increased costs to clients. Looking ahead, service providers expressed stronger optimism about the next twelve months, citing plans for increased investment in 2026 and expectations of more supportive business conditions.

The HCOB France Services PMI fell to 47.9 in January 2026 from 50.1 in December, flash estimates showed, marking the sharpest contraction in services activity in nine months. The decline reflected subdued economic conditions and customer hesitancy to place orders, amid ongoing political uncertainty surrounding the national budget. New business volumes weakened markedly, with services firms reporting a much steeper deterioration in demand than manufacturers. Backlogs of work continued to fall, while employment rose only marginally, highlighting cautious hiring behavior. On the price front, average prices charged were unchanged, as clients successfully negotiated amid favorable buyer conditions, while input cost inflation remained well below historical norms despite a modest uptick. Finally, business expectations improved, with firms more optimistic about the year ahead on hopes that the budget impasse will ease, although overall sentiment remains restrained by fragile demand conditions.