FX.co ★ French Services Sector Slips Back Into Contraction as HCOB PMI Falls Below 50

France’s services sector moved back into contraction territory in October, as the HCOB France Services PMI dropped to 48.4, down from 51.2 in September 2026.

The October reading, published on 23 October 2026, marks a notable reversal from the previous month, when the index had risen above the 50.0 threshold that separates expansion from contraction. The decline suggests a renewed loss of momentum in France’s dominant services industry during October, raising concerns about the resilience of domestic demand and the broader economic outlook.

With the indicator now below 50 again, the latest PMI data will likely sharpen investor focus on incoming French and euro area figures for signs of whether this downturn in services activity proves temporary or the start of a more sustained soft patch.