The S&P Global France Services PMI declined to 46.2 in October 2026, down from the preliminary estimate of 48.4 and from 51.2 in September, signaling the sharpest contraction in activity since May. The downturn was mainly driven by subdued demand, tighter financial conditions, and increased client caution. New business fell at its fastest rate in five months, reflecting particularly weak domestic demand, even as export orders showed a slight increase.
Employment in the sector also continued to decline, extending the current run of job losses to six consecutive months. Firms attributed the reduction in staffing to restructuring efforts, retirements, and the non-renewal of fixed-term contracts.
On the cost side, inflationary pressures remained strong across the services economy, fueled by rising fuel costs, higher supplier charges, and increased wages. In response, service providers raised their selling prices in an attempt to pass these higher input costs on to clients.
Looking ahead, French service providers turned pessimistic about the 12-month outlook for the first time since April 2020, underscoring growing concerns about the sector’s future trajectory.
