FX.co ★ French Private Sector Contracts Less than Initially Thought

The HCOB France Composite PMI for May 2025 has been adjusted upward to 49.3, surpassing the initial flash estimate of 48 and April's 47.8. This data indicates a minor overall contraction, representing the least severe decline during the ongoing nine-month downturn. Both the services sector, with a PMI of 48.9 (up from 47.3 in April), and the manufacturing sector, with a PMI of 49.8 (up from 48.7), experienced smaller contractions. The reduction in new orders decelerated significantly in comparison to April, although export sales in the private sector declined at a slightly accelerated pace. Despite a resurgence in job growth within French manufacturing, overall employment experienced a slight decline due to a reduction in staff numbers by services firms for the sixth consecutive month, reflecting deteriorating business confidence. Input costs increased markedly in May, primarily driven by the services sector, even as the prices for goods and services were offered at the most significant discounts observed since January 2021.