| Actual | Previous | |
| Composite Index | 49.6 | 47.6 |
| Manufacturing Index | 50.0 | 50.7 |
| Services Index | 49.8 | 47.4 |
Highlights
France’s private-sector downturn eased markedly in July 2026, with the composite PMI rising from 47.2 to a five-month high of 49.6. Although still below the neutral 50-point threshold, the reading indicates that economic activity moved close to stabilisation following the sharp contraction experienced during the second quarter.
The improvement was driven primarily by services, where activity increased from 46.8 to 49.8 and new business expanded for the first time since November 2025. However, the recovery remains domestically dependent, as export orders declined sharply for an eighth consecutive month. Manufacturing also weakened as its headline PMI fell to 50.0, while the output index declined to 48.8 amid deteriorating demand.
Declining employment and backlogs indicate substantial spare capacity, suggesting that businesses remain reluctant to recruit until demand strengthens more convincingly. Subdued confidence reflects continuing concerns about the Middle East conflict and uncertainty surrounding France’s forthcoming presidential election period.
The further easing of input-cost and output-price inflation offers some relief to businesses. Nevertheless, France appears to be approaching stabilisation rather than entering a robust recovery, with fragile external demand and weak investment confidence remaining important obstacles.