Prior 50.1Composite PMI 49.1 vs 48.6 prelimPrior 50.0<\/p>\n
The headline reading is better than the initial estimate but still points to a first contraction in three months for France’s services sector. Of note, new business is seen declining at its fastest pace in six months. The good news at least is that employment conditions are seen holding up while firms’ expectations for growth in the year ahead were the most upbeat since September last year.<\/p>\n
HCOB notes that:<\/p>\n
\u201cFrance\u2019s private sector economy currently presents a diverging picture. Manufacturing has shown tentative signs of gradual
\nrecovery in recent months, while the service sector entered the new year on a softer footing, reflected in a cooling of activity.
\nAs a result, the composite index has slipped back below the growth threshold, due to the heavier weight of services in the
\noverall economy.\n<\/p>\n
\u201cAt the start of the year, France\u2019s service sector experienced a fresh setback. Order books were notably sparse, with clients
\ndisplaying caution. Against this backdrop, it is all the more noteworthy that forward\u2011looking business expectations have risen
\nsignificantly. This optimism appears to rest on the assumption that a resolution to the protracted budget deadlock will help
\nreduce uncertainty, thereby supporting both consumption and investment momentum.\n<\/p>\n
\u201cLabour market prospects in the French service sector appear to be broadly balanced. Survey data have pointed to a
\nmodest recovery in hiring throughout the second half of 2025, though simultaneous reports of diminishing work backlogs
\nsuggest this trend could be a fragile one. Should new business continue to fall short, the labour market outlook could
\nbecome more challenging over the coming months.\n<\/p>\n
\u201cPrice dynamics in the French services sector remain modest for the time being. Where feasible, firms are attempting to
\npass higher costs, which are predominantly wage\u2011related, on to customers in an effort to preserve margins. Overall, cost
\npressures are below their historical average, indicating that no meaningful inflationary impulse appears to be building in the
\nservice sector at present.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Prior 50.1Composite PMI 49.1 vs 48.6 prelimPrior 50.0 The headline reading is better than the initial estimate but…\n","protected":false},"author":2,"featured_media":274515,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":{"0":"post-274514","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-il","11":"tag-israel"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/274514","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=274514"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/274514\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/274515"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=274514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=274514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=274514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}