FX.co ★ France Services Sector Contracts Sharply in September

The HCOB France Services PMI declined to 48.5 in September 2025, a slight revision from the initial 48.9 estimate. This recent figure signals the fastest rate of contraction since April, underscoring a deeper shift into a contracting market. This downturn is attributed to client hesitancy, weak market conditions, and growing uncertainty. For the 13th month in a row, new business has waned, although the rate of decline has eased since January. International demand continued its downward trend, persisting in the decline of new export orders. Despite these challenges, companies increased hiring, marking the second consecutive month of employment growth, albeit at a minimal rate, while outstanding work tapered. Regarding pricing, input costs experienced a modest rise, but competitive forces led to a reduction in output prices for the first time since May. Business confidence, while historically muted, reached its highest level in three months, buoyed by hopes for stronger demand and new product offerings, although political uncertainties continue to temper optimism.