FX.co ★ France Services Contraction Unexpectedly Deepens

The S&P Global France Services PMI declined to 48.4 in August 2026 from 49.6 in July, indicating a sharper contraction in services activity, according to preliminary estimates. The result also surprised markets, which had expected the downturn to moderate, with a forecast of 49.8.

The slump in activity was accompanied by further staff reductions in the services sector, in stark contrast to the fastest pace of factory job creation in a year. Service providers faced a stronger acceleration in cost pressures, while their selling prices increased at the quickest rate since May.

Firms in the services sector also worked through their backlogs at a faster pace in August. At the same time, business confidence deteriorated, with expectations for the year ahead falling to their lowest level since May, amid heightened uncertainty about the international environment and the domestic political situation.