France Services Activity Revises Slightly Lower

The S&P Global France Services PMI rose to 49.6 in July 2026, revising slightly lower from the preliminary estimate of 49.8, but improved from June's 46.8. The latest reading signaled only a marginal contraction in business activity, marking the softest decline since the contraction began in the second quarter. The downturn eased as new orders increased for the first time since November, supported by stronger domestic demand. However, export sales declined for a twelfth consecutive month, highlighting continued weakness in overseas demand. Labor market conditions weakened further, with employment falling at a faster pace due to the expiration of fixed-term contracts and the non-replacement of voluntary leavers. On the price front, input cost inflation eased to a five-month low, while output charge inflation slowed to a three-month low. Lastly, business confidence improved but remained subdued amid concerns over the political environment and higher interest rates.

France's S&P Global Services PMI rose to 49.8 in July 2026, up from 46.8 in the previous month and exceeding market expectations of 47.5, signaling the softest contraction in business activity in seven months as the index moved closer to the 50.0 threshold. The latest reading was the highest since the outbreak of the Middle East conflict, reflecting a broad stabilization in the services sector. Demand improved, with new business expanding for the first time since November, supported by stronger domestic sales, although new export orders continued to decline sharply for an eighth consecutive month. Employment fell for a third straight month as firms remained reluctant to hire amid subdued business confidence, with some citing uncertainty ahead of next year's presidential election and the ongoing economic fallout from the Middle East conflict. On the price front, both input cost and output price inflation eased for a second straight month, further moderating price pressures.

France's S&P Global Services PMI rose to 46.8, revised down from the preliminary estimate of 47.4, in June 2026 from 44.3 in May, marking its first increase since February. The latest reading signaled a softer contraction in business activity but remained below the 50.0 threshold. The decline in output and new orders eased to the slowest pace since March as firms continued to cite weak demand, higher prices, and the Middle East conflict as key headwinds, though export demand showed signs of improvement. Employment fell for a fifth consecutive month, but the pace of job cuts slowed. On the pricing front, input cost inflation eased to a three-month low despite continued increases in fuel, energy, and wage costs, while output price inflation moderated. Business confidence also improved slightly after four months of declining sentiment.