FX.co ★ French Private Sector Unexpectedly Shrinks

The HCOB France Composite PMI decreased to 48.6 in January 2026 from December's figure of 50, falling short of market expectations of 50, according to preliminary estimates. This indicates a return to contraction within the country's private sector for the first time since the previous October, following two months of near-stagnation. Economic conditions remained subdued due to ongoing concerns about domestic financial matters and persistent external uncertainties. The services sector experienced a notable decline, reaching a nine-month low with a PMI of 47.9, compared to December’s 50.1. Meanwhile, manufacturing output saw a modest recovery, with the PMI rising to 51.9 from 49.7.