The S&P Global France Services PMI slipped to 48.0 in August 2026, revised down from the preliminary estimate of 48.4 and indicating a steeper contraction than July’s 49.6 reading. New business fell for the eighth time in the past nine months, as firms reported weaker demand, particularly from abroad, and highlighted the impact of extreme heat on activity. Employment declined again, with companies continuing to refrain from replacing departing staff and cutting permanent headcount.
On the cost side, input prices rose further, with higher fuel costs singled out as a major driver of inflationary pressure. In response, output charges registered their fastest increase in three months.
Looking ahead, French service providers were somewhat more optimistic about activity over the next 12 months. However, confidence remained historically subdued and below the survey’s long-run average, as political uncertainty, softer client demand, and a difficult global economic backdrop continued to weigh on sentiment.
