FX.co ★ France’s Services Sector Nears Growth as HCOB PMI Climbs to 49.6 in July

France’s services industry showed signs of stabilisation in July, with the HCOB France Services PMI edging up to 49.6 from a previous reading of 46.8. The latest figure, updated on 5 August 2026, points to a marked improvement in conditions, even though the sector remains marginally in contraction territory.

The move from 46.8 to 49.6 suggests that the downturn in services activity has eased significantly over the period, bringing the index to the threshold of the 50-point mark that separates contraction from expansion. While still below that critical level, the latest data indicate that the French services economy is approaching a potential return to growth, following a weaker performance earlier in the same month.

Market participants and analysts will likely view the July reading as a cautiously encouraging signal that pressure on the sector may be abating. Further data in the coming months will be key to confirming whether this improvement solidifies into a sustained expansion in France’s services industry.