France February services PMI 49.6; prelim 49.6

France February services PMI 49.6; prelim 49.6

France’s Services Sector Stagnates as PMI Remains Below Growth Threshold

France’s services sector showed limited improvement in February 2026, with the HCOB Flash France Services PMI registering 49.6, a two-month high but still below the 50-point threshold separating growth from contraction. This reading aligns with the preliminary estimate and marks the second consecutive month of sub-50 levels, indicating persistent weakness in private-sector activity. The final January services PMI had stood at 48.4, revised upward from an initial 47.9.

The composite PMI for France’s services and manufacturing sectors edged up to 49.9 in February, slightly above expectations, but remains near the growth threshold. Meanwhile, the flash manufacturing PMI fell to 49.9 in February, down from 51.2 in January. However, the final manufacturing PMI for February was revised to 50.1, signaling modest expansion.

New business inflows continued to decline for the third consecutive month, with exports dragging on order books. Employment stagnated as job cuts in manufacturing offset slight gains in services. Price dynamics diverged: service providers reduced prices, while manufacturing prices rose at their fastest pace in 1.5 years. Overall selling prices fell for the first time in three months, and input cost inflation eased to a four-month low.

Economists noted that the private sector remains “struggling to gain real momentum”, with the composite PMI hovering near 50 since November 2025. While manufacturing activity expanded in early 2026, new orders remained weak, and export markets provided little support. Service providers expressed cautious optimism about future investment, though near-term demand remains subdued.

The data underscore ongoing challenges for France’s economy, including weak domestic and external demand, while mixed price trends highlight sector-specific pressures. Policymakers may need to address structural bottlenecks to stimulate sustained growth.