France Services Activity Revised Lower

The S&P Global France Services PMI fell to 48.0 in August 2026, revising lower than the preliminary estimate of 48.4 and marking a sharper contraction than 49.6 in the previous month. New business declined for the eighth time in the past nine months, with firms citing the impact of extreme heat, particularly on demand from non-domestic markets. Employment also fell once again, as companies continued to avoid replacing departing workers and reduced permanent staff numbers. On the price front, input costs rose further, with higher fuel prices identified as a key source of inflationary pressure. Meanwhile, output charges recorded their highest increase in three months. Looking ahead, French service providers became more optimistic about the 12-month outlook, although confidence remained historically weak and below the survey average. Political uncertainty, weaker client demand, and challenging global economic conditions continued to weigh on sentiment.

The S&P Global France Services PMI fell to 48.4 in August 2026 from 49.6 in July, signaling a faster contraction in services activity, preliminary estimates showed. The reading also defied market expectations for the contraction to ease to 49.8. The downturn was accompanied by further workforce cutbacks, contrasting with the fastest pace of factory job creation in a year. Cost pressures increased at a faster pace among service providers, while selling prices rose at the fastest rate since May. Service companies also cleared backlogs of work at a faster pace in August. Business confidence weakened, with optimism toward the year-ahead outlook falling to its lowest level since May amid uncertainty surrounding the international landscape and domestic political situation.

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.