FX.co ★ France Services Sector Contracts at Faster Pace

The HCOB France Services PMI slightly decreased to 48.7 in June 2025, down from 48.9 in May, and failed to meet market expectations of 49.2, according to preliminary estimates. This signals the tenth straight month of contraction within the French services sector, though the decline in new business activities is now slowing to its mildest pace since the year's start. On the employment aspect, service providers experienced a sharper decline in staffing compared to manufacturers, primarily due to the non-renewal of temporary positions and unfilled retirements or voluntary departures. Concerning pricing, while input costs for service companies continued to increase in June, the rate of growth was among the most moderate noted in the past four years. Conversely, output charges escalated once more, as companies aimed to transfer cost pressures onto clients. Prospectively, business confidence enhanced in June, with optimism among French service providers reaching its highest point since last October.