France Services PMI at 5-Month Low

The S&P Global France Services PMI rose to 47.4 in June 2026, picking up from a more than five-year low of 44.3 in the previous month and better than market expectations of 45.5, flash estimates showed. It marked the highest reading since March, as business activity contracted at a slower pace amid tentative improvements in new orders and client demand. On the pricing front, inflationary pressures softened from the previous month but remained significantly elevated compared with levels seen before the outbreak of the Middle East conflict. Looking ahead, business expectations for the next twelve months improved for the first time this year. However, overall optimism remained subdued by historical standards, as rising fuel costs, ongoing geopolitical tensions in the Middle East, and broader economic uncertainty continued to weigh on confidence.

The S&P Global France Services PMI fell to 44.3 in May 2026, revised upward from the preliminary estimate of 42.9, but remained below April's 46.5, marking the sharpest contraction in business activity since November 2020. Demand conditions deteriorated further, with new orders declining at the fastest pace in five-and-a-half years amid weaker client demand and rising cost pressures. Export demand also contracted sharply, recording one of the steepest declines since the series began in 2014. On prices, input cost inflation accelerated to its highest level in just over three years, driven by higher fuel, raw material, and computer hardware costs. Firms responded by raising selling prices at the fastest pace since June 2023. Labor market conditions weakened, with employment falling at the sharpest rate since February 2025. Meanwhile, business sentiment dropped to a one-year low as inflation concerns and uncertainty surrounding the Middle East conflict weighed on the outlook.

The S&P Global France Services PMI fell to 42.9 in May 2026 from 46.5 in the previous month, worse than market expectations of 46.6, preliminary estimates showed. It marked the sharpest contraction since November 2020, as the ongoing Middle East conflict drove up energy and fuel costs, placing significant pressure on the overall output. Service providers also reported a steep decline in sales volumes. On the price front, inflationary pressures intensified, with firms again citing higher fuel and energy costs as key drivers of price increases. Finally, business sentiment deteriorated markedly for the year ahead, with firms increasingly concerned about persistent price pressures and geopolitical risks. Overall sentiment turned negative for the first time since November 2024, with the level of pessimism reaching its highest since the onset of the COVID-19 pandemic in April 2020.