FX.co ★ France Services Sector Remains Subdued

The HCOB France Services PMI decreased slightly to 47.3 in April 2025 from 47.9 in March, although it was adjusted upwards from an initial estimate of 46.8. This represents the eighth consecutive month of contraction, reflecting ongoing challenges in demand. Business activity saw a downturn primarily due to a significant reduction in new orders, particularly from the domestic market, although the decline in new export business was the slowest it has been in three months. Backlogs of work shrank for the twelfth month in a row, albeit at the slowest rate since January. Employment figures showed a decrease, owing largely to staffing departures not being replaced and difficulties in hiring, although the reduction was moderate. Regarding pricing, the inflation of input costs dropped to its lowest in six months, notwithstanding reports of rising wages and procurement costs, while selling prices remained stable as companies navigated competitive pressures alongside the need to pass on costs. Finally, business confidence rose to its highest level in four months, yet it continues to be low by historical standards due to ongoing global uncertainties.