FX.co ★ French Private Sector Broadly Stagnant in February

The HCOB France Composite PMI edged up to 49.9 in February 2026 from 49.1 in January, coming in slightly above market expectations of 49.7, according to flash estimates. The latest reading signals that overall business activity in France was broadly stable during the month, amid persistently weak demand conditions.

Activity in the services sector remained in contraction territory, with the services PMI rising to 49.6 from 48.4 in January. In contrast, manufacturing output continued to expand, although at a slower pace, with the PMI easing to 51.6 from 52.1 after January’s near four-year high.

New business inflows declined for a third consecutive month and at the sharpest rate since July, as export demand continued to act as a major drag on total order books. Export orders recorded their steepest fall since December 2024.

Hiring momentum also faded, with employment broadly stagnating after two months of growth around the turn of the year.

On the price front, input cost inflation eased to a four-month low, while output charges were reduced slightly. Business confidence for the year ahead dipped marginally but remained above the average level seen in 2025.