FX.co ★ France Services Sector Contracts More than Expected

The HCOB France Services PMI dropped to 48.9 in September 2025, down from 49.8 in August, underperforming market forecasts of 49.6, according to preliminary figures. This decline marks the thirteenth consecutive month of contraction in the sector, largely due to a more pronounced decrease in output after a brief period of stability in the middle of Q3. Furthermore, new orders continued their downward trend for the sixteenth straight month as subdued customer demand remained a significant factor dampening activity levels. Despite this challenging demand landscape, September registered a second consecutive rise in private sector employment, a trend not seen in over a year. Job growth occurred in all monitored sub-sectors, including services, though both experienced slowdowns. Regarding pricing, service providers observed a moderate increase in input costs, while output prices decreased in response to strong competitive pressures.