French architecture in France

France PMI February 2024

France: French service sector shows signs of stabilizing in February

The HCOB France Services Purchasing Managers’ Index (PMI) rose to 48.4 in February from January’s 45.4, indicating a slight improvement since last month. While the index remained below the 50.0 no-change threshold, the reading signaled a softer deterioration in service sector operating conditions compared to the previous month.

The decline in business activity in the service sector slowed markedly. This improvement was largely driven by a recovery in demand conditions, with new export sales expanding for the first time since the previous May. The sector also saw the softest decrease in total new business in nine months, buoyed by new customer acquisitions. Additionally, employment levels in the sector grew, with increases in both temporary and permanent recruitment, indicating a positive shift in demand and business activity trends.

On the price front, the service sector faced persistent but cooling cost inflationary pressures, with input costs rising at the slowest pace in two-and-a-half years but remaining high by historical standards due to ongoing wage pressures. Despite these cost challenges, service providers were much less aggressive in raising their prices, with the increase in selling prices the weakest since May 2021. This adjustment in pricing, alongside a notable improvement in business sentiment— where growth expectations reached a seven-month high—reflects a cautiously optimistic outlook among service sector companies regarding future business conditions.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen