France Services Slump Deepens in April

The S&P Global France Services PMI fell to 46.5 in April 2026 from 48.8 in March, confirming preliminary estimates. This marked the steepest contraction since February 2025, as demand conditions weakened significantly. New orders declined at the fastest pace in close to two-and-a-half years, driven by slower client decision-making, cautious spending behaviour, cost pressures, and unfavourable geopolitical conditions. Export demand also fell at the quickest rate in nearly 18 months. On prices, input cost inflation surged to a 29-month high, reflecting sharp increases in fuel, energy, and material costs. Despite this, firms raised selling prices only modestly, as intense competition limited pricing power. Labour market conditions remained mildly positive, with firms still adding staff, although job creation was marginal. Business sentiment fell to a four-month low amid rising inflation expectations and ongoing geopolitical tensions in the Middle East.

The S&P Global France Services PMI fell to 46.5 in April 2026, from 48.8 in the previous month and worse than market expectations of 48.4, according to flash estimates. This marks the fourth consecutive month in contraction territory and the steepest decline since February 2025, highlighting weakening consumer demand as households grow more cautious amid ongoing economic uncertainty. On the price front, service providers are facing rising transportation costs, driven by prolonged tensions in the Middle East that have disrupted global supply chains and kept energy prices elevated. In contrast, output prices have remained relatively stable since the outbreak of the conflict, a development likely to be welcomed by policymakers at the European Central Bank. Finally, confidence deteriorated during the latest survey period, slipping to its joint-lowest level since July 2025, as uncertainty and fears of increasing customer cautiousness continued to weigh on sentiment.

The S&P Global France Services PMI fell to 48.8 in March 2026, revised upward from the initial estimate of 48.3 but down from 49.6 in February, indicating a deeper contraction in the services sector. New business volumes fell at the fastest pace since July 2025, weighed down by subdued client spending ahead of local elections and Middle East conflict-related uncertainty. Export orders continued to contract, extending an eight-month decline. Employment also fell marginally for the first time since late 2025 as firms refrained from replacing departing staff, while backlogs remained broadly unchanged. Input prices rose sharply to a 20-month high, driven by higher fuel costs, supplier price increases, and wage pressures, yet output prices held steady amid competitive pressures. Overall business confidence slipped to a three-month low, reflecting geopolitical and domestic uncertainties, though expectations for the year ahead remained cautiously positive.