05.08.202608:01:55UTC+00France Private Sector Contraction Eases in July

The S&P Global France Composite PMI climbed to 49.4 in July 2026 from 47.2 in June, coming in just below market expectations of 49.6. The latest reading points to the mildest contraction in private sector activity in five months but still marks a seventh consecutive month below the 50.0 expansion threshold.

Overall demand for French goods and services broadly stabilized, as a renewed rise in domestic orders helped offset another sharp decline in export sales. Business activity continued to fall, but only marginally, while firms worked through backlogs at a faster pace even as employment declined more quickly.

Across the private sector, inflationary pressures eased, with slower increases in both input costs and output prices. Looking ahead, business sentiment strengthened further, though confidence remained historically muted amid ongoing concerns about the political environment and elevated interest rates.