France Services Sector Nears Stabilisation

The HCOB France Services PMI rose to 49.8 in August 2025 from 48.5 in July, slightly above the initial estimate of 49.7. This marked its highest level in a year, though still just below the 50 threshold, pointing to a near-stabilisation after eleven months of decline. Business was broadly unchanged, while the decline in new orders eased to its slowest pace since January, even as export demand dropped sharply. Firms also recorded the first rise in backlogs since April 2024, prompting the fastest employment growth in 15 months and the first consecutive job gains since last November. Price pressures, however, ticked higher, with input costs climbing at a six-month peak on wages and materials. Output charges also rose for a third month, the quickest in nine months but constrained by competition. Looking ahead, optimism improved slightly from July’s low, though sentiment remained historically weak amid political uncertainty.