FX.co ★ France Services Sector Falls to Over 5-Year Low

The S&P Global France Services PMI declined to 44.3 in May 2026, revised up from the preliminary reading of 42.9 but still below April’s 46.5, signaling the steepest contraction in service-sector activity since November 2020. Demand conditions worsened further, with new business inflows falling at the fastest rate in five-and-a-half years amid softer client demand and mounting cost pressures. Export sales also slumped sharply, registering one of the most pronounced declines since the survey began in 2014.

On the price front, input cost inflation quickened to its highest level in just over three years, driven by rising fuel, raw material, and computer hardware costs. In response, service providers increased their output charges at the fastest pace since June 2023. Labor market conditions deteriorated as well, with employment posting its steepest drop since February 2025. At the same time, business confidence fell to a one-year low, as concerns over inflation and uncertainty related to the conflict in the Middle East weighed on the sector’s outlook.