France’s S&P Global Flash Composite PMI increased to 49.6 in July 2026, up from 47.2 in June, indicating the mildest downturn since the outbreak of the Middle East conflict in February. The overall improvement was driven by the services sector, where activity climbed to a seven-month high of 49.8, compared with 46.8 in June, supported by the first rise in demand since November. By contrast, manufacturing activity slipped to 48.8 from 49.1, pointing to weaker demand conditions.
Private-sector employment declined for a third consecutive month, as firms remained cautious about hiring. Signs of growing spare capacity were also evident across the private sector, with backlogs of work falling for a fourth straight month.
On the price front, inflationary pressures moderated, as both input costs and output prices increased at a slower pace. Finally, business sentiment stayed muted, with the Future Output Index remaining well below its long-run average.
