FX.co ★ France Private Sector Downturn Softens

The S&P Global France Composite PMI rose to 47.2 in June 2026 from 44.9 in May, indicating the mildest downturn in private sector activity in three months. However, the index remained below the 50.0 mark for a sixth consecutive month, signaling an ongoing contraction. Business activity continued to decline across both manufacturing and services, though the rate of contraction slowed from May’s 28‑month low. New orders also fell for the sixth month in a row, but the pace of decline eased to its slowest in three months.

On the labor front, employment dipped only marginally as manufacturers resumed hiring, partly offsetting continued job cuts in other areas. In terms of prices, input cost pressures eased further but stayed historically high, indicating that inflationary forces were still constraining businesses, even as they moderated from recent peaks. Looking ahead, business confidence recovered from its lowest level in one and a half years, pointing to improved expectations for future activity despite the current downturn.