FX.co ★ France Services Activity Revises Slightly Lower

The S&P Global France Services PMI rose to 49.6 in July 2026, slightly below the preliminary estimate of 49.8 but up from 46.8 in June. This latest reading indicates only a marginal contraction in services activity and represents the mildest decline since the downturn began in the second quarter.

The slowdown in the downturn was driven by a return to growth in new orders, which increased for the first time since November, supported by stronger domestic demand. In contrast, export sales fell for the twelfth consecutive month, underscoring persistent weakness in external demand.

Labor market conditions deteriorated further, with employment declining at a faster rate, largely due to the expiry of fixed-term contracts and the decision not to replace employees who left voluntarily.

On the price front, input cost inflation eased to a five-month low, while the rate of increase in output charges slowed to a three-month low.

Business sentiment picked up but remained muted overall, weighed down by concerns about the political environment and the impact of higher interest rates.