The HCOB France Services PMI rose to 49.6 in February 2026, up from 48.4 in January and beating market expectations of 49.2, according to flash estimates. Despite the improvement, the index remained below the 50.0 threshold for the second consecutive month, signaling continued contraction in the services sector. The downturn was largely attributed to weak customer demand, unfavorable weather conditions, and persistent softness in the construction industry.
New business inflows declined again, with the rate of contraction accelerating compared with the previous month. Firms also reported a further reduction in backlogs of work, even as service providers modestly increased their staffing levels.
On the pricing front, services companies offered their largest discounts in nine months. Looking ahead, firms were less optimistic in February than previously, although sentiment remained comfortably above the average level recorded in 2025. Many service providers noted that expectations of a demand recovery were underpinning their outlook for the coming months.
