FX.co ★ France Services Sector Hits 7-Month High

France's S&P Global Services PMI rose to 49.8 in July 2026, up from 46.8 in June and above market expectations of 47.5. This signaled the mildest contraction in business activity in seven months, with the index edging closer to the 50.0 no-change threshold. It was also the highest reading since the outbreak of the Middle East conflict, pointing to a broad stabilization in the services sector.

Demand conditions strengthened, as new business increased for the first time since November, driven by firmer domestic sales. However, new export orders continued to fall sharply for the eighth consecutive month.

Employment declined for a third straight month, with firms remaining cautious about hiring amid weak business confidence. Some respondents attributed this reluctance to uncertainty ahead of next year's presidential election and the ongoing economic fallout from the Middle East conflict.

On the pricing front, both input costs and output charges rose at a slower pace for the second month in a row, indicating a further easing of overall price pressures.