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

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typeContent_19130:::2025-07-03T07:59:48

French Private Sector Shrinks Less than Initially Thought

In June 2025, the HCOB France Composite PMI registered at 49.2, closely mirroring the 49.3 reading from May and showing an upward revision from its preliminary estimate of 48.5. This ongoing contraction signals a persistently weak manufacturing sector, which stood at 48.1 compared to May's 49.8, coupled with a continued but less steep decrease in service activities, which measured 49.6 against 48.9 previously. Although new orders continued to decline, the rate was the slowest observed in five months, and new overseas business also declined despite a slight increase in service sector exports. Despite the persistent weakness in output and new orders, business confidence soared to its highest level since September 2024, reflecting enhanced optimism across both manufacturing and service sectors. Employment experienced a slight overall reduction, with job increases in manufacturing being nullified by losses in the service sector. Regarding prices, input cost inflation eased to a comparatively moderate pace, while output prices saw a slight increase following a decline in May.

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