FX.co ★ French Private Sector Falls Further in June

The HCOB Flash Composite PMI for France declined to 48.5 in June 2025, from 49.3 in May, falling short of market expectations which also stood at 49.3, according to the preliminary estimates. This marks the tenth consecutive month of contraction within the French private sector, as the slowdown slightly intensified driven by persistently weak demand. The reduction was widespread across various sectors, with manufacturing experiencing a notable drop, as the PMI fell to a four-month low of 47.8 from 49.8 in the previous month. Although the services sector underperformed, its activity levels remained relatively unchanged from the prior month, with a PMI of 48.7 compared to 48.9. Overall sales have been declining for the 13th month in a row, with a slight acceleration in the rate of decline, including a reduction in export orders. The decrease in outstanding business volumes has led to further job cuts. On the pricing front, input cost inflation stayed stable, whereas selling prices witnessed only a modest rise due to subdued demand. Despite these challenges, business confidence saw improvement, reaching an eight-month high after hitting a low in May.