The S&P Global France Services PMI slipped to 48.8 in March 2026, revised up from the flash estimate of 48.3 but down from 49.6 in February, signaling a deeper contraction in the services sector. New business volumes declined at the fastest rate since July 2025, pressured by subdued client spending ahead of local elections and uncertainty linked to the conflict in the Middle East. Export orders also continued to fall, extending an eight-month sequence of contraction.
Employment dipped marginally for the first time since late 2025, as firms chose not to replace departing staff, while backlogs of work were broadly unchanged. Input costs rose sharply to a 20-month high, driven by higher fuel prices, increased supplier charges, and wage pressures. However, output prices were largely unchanged, constrained by strong competitive pressures.
Overall business sentiment eased to a three-month low, reflecting both geopolitical risks and domestic political uncertainty. Even so, firms’ expectations for activity over the year ahead remained cautiously optimistic.
