FX.co ★ French Private Sector Activity Contracts the Most Since 2024

The S&P Global France Composite PMI dropped to 44.9 in May 2026 from 47.6 in April, hitting a 28‑month low and indicating the sharpest contraction in private sector activity since early 2024. This decline was driven by a marked deterioration in demand conditions, with total new business falling at the fastest pace in a year and a half amid weakening economic momentum. Labour market conditions also worsened, as private sector employment declined at the quickest rate in 15 months. At the same time, inflationary pressures intensified, with input costs and output charges rising at their fastest rates in 38 and 36 months, respectively, reflecting persistent cost pressures across both manufacturing and services. Looking ahead, business sentiment slipped to a one‑year low and remained only slightly positive, as firms cited inflation and uncertainty related to the Middle East conflict. Expectations for future activity continued to soften, extending a downward trend in confidence that began earlier in the year.