FX.co ★ France Services PMI Shrinks Most in 8 Months

The HCOB France Services PMI declined to 47.1 in October 2025 from 48.5 the preceding month, falling short of market forecasts of 48.4, according to preliminary estimates. This marks the fourteenth consecutive month of contraction and represents the most significant downturn since February. The decline can be attributed to accelerated output reductions in response to weak client demand and subdued domestic economic conditions. Furthermore, new orders continued their approximately eighteen-month contraction, indicative of decreased client spending amid ongoing domestic political instability. Meanwhile, service providers experienced marginal job growth outpacing that in the manufacturing sector. Regarding pricing, the latest figures point to a continued reduction in cost pressures, with input cost inflation reaching its lowest level since November 2020. Simultaneously, there was a modest increase in output prices, signaling a shift from the discounting trend seen in the prior month.