FX.co ★ France Services Sector Improves to 9-Month High

In June 2025, the HCOB France Services PMI increased to 49.6, up from 48.9 in May, surpassing the preliminary estimate of 48.7. This latest data marks the tenth straight month of contraction in the services sector; however, the rate of decline has slowed, equaling the slowdown observed in September 2024. Notably, the decrease in new orders eased for the second month in a row, showing the smallest decline since January. Despite this, employment figures continued to dwindle, with numerous companies reporting cutbacks in permanent staff. In terms of inflation, input cost pressures remained relatively subdued, whereas output prices experienced a rise for the fourth time over the past five months. Finally, business confidence saw a robust improvement in June. Service providers are increasingly optimistic about the future, buoyed by easing inflationary pressures and the anticipation of a more accommodating monetary policy, both of which are projected to bolster household spending and business investment.