03.09.202507:57:44UTC+00France Services Sector Nears Stabilisation

In August 2025, the HCOB France Services PMI increased to 49.8 from July's figure of 48.5, edging just above the preliminary estimate of 49.7. This represents its highest point in a year, although it remains just under the critical threshold of 50, signaling a near-stabilization after a prolonged eleven-month downturn. Business activities showed little change, while the reduction in new orders slowed to the most gradual pace since January, despite a significant drop in export demand. For the first time since April 2024, firms experienced a rise in backlogs, which spurred the fastest employment growth seen in 15 months and marked the first back-to-back job gains since last November. However, there was an uptick in price pressures, with input costs reaching a six-month peak due to increased wages and material expenses. Output charges climbed for the third consecutive month at the quickest rate in nine months, though they remained restrained by competition. Looking forward, business optimism saw a modest improvement from July’s low, yet sentiment stayed historically fragile amid ongoing political uncertainty.