In a concerning development for the French economy, the HCOB France Composite Purchasing Managers' Index (PMI) has signaled a contraction in January 2026. According to the latest data released on January 23, 2026, the index fell to 48.6 from December's neutral mark of 50.0, indicating the first sign of shrinkage in the private sector activity in several months.
The Composite PMI, which reflects the performance of both manufacturing and service sectors, slipping below the critical 50.0 threshold suggests a decline in economic health, as readings below 50 typically point to contraction. This change marks a pivotal shift from the stagnation observed in December when the index barely clung to the edge of growth.
The decline to 48.6 raises concerns among economists and policymakers, as France grapples with sustaining economic momentum amid global uncertainties. With the contraction confirming dampened business activity, stakeholders will be closely monitoring the situation for further signs of economic challenges in the coming months.
