FX.co ★ France Private Sector Activity Shrinks for 9th Month

The HCOB Flash Composite PMI for France edged slightly higher to 48 in May 2025 from April's figure of 47.8, aligning with market forecasts. While this uptick signifies a minor improvement, the reading continues to reflect a downturn in private sector activity, marking the ninth consecutive month of decline. The service sector remains predominantly responsible for this ongoing weakness, posting a reading of 47.4 compared to 47.3, while the manufacturing sector showed signs of near stagnation, recording 49.5 against the previous 48.7. A significant reduction in new order intakes continues to constrain business activity levels, with service companies experiencing the sharper decline in sales across both observed sectors. The heightened competition for business led to the steepest monthly reduction in selling prices since January 2021. Additionally, the data from May indicated ongoing job cuts, further depletion of backlogged orders, and a marked decline in business confidence. Notably, company sentiment reached its lowest level since April 2020.