France’s private sector showed a further loss of momentum in August, with the HCOB France Composite PMI easing to 48.5, down from 49.4 previously. The latest reading, covering August 2026 and updated on 3 September 2026, remains below the 50-point threshold that separates expansion from contraction, signaling a continued downturn in overall business activity.
The decline from 49.4 to 48.5 suggests that the slowdown in French output has deepened, with both manufacturing and services likely contributing to the softer composite performance. While the indicator was already in contractionary territory, the additional drop indicates that firms may be facing weaker demand conditions and increasing pressure on growth prospects.
With the August data confirming a deterioration in momentum, attention will now turn to forthcoming releases to gauge whether this soft patch in the French economy will prove temporary or develop into a more entrenched period of subdued activity.