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04.02.202609:07:10UTC+00France Services PMI Revised Higher

The HCOB France Services PMI declined to 48.4 in January 2026, a slight revision up from the initial estimate of 47.9, and a decrease from 50.1 in December. This latest PMI reading indicates a shift back into contraction not seen since October 2025, driven by weak demand, atypically poor weather, and generally adverse economic conditions. New orders decreased at the quickest rate in six months as clients exercised caution in their spending decisions. On a positive note, service providers displayed a modest inclination to hire after two months of stagnation, with workforce numbers rising marginally to support projected activity. Regarding pricing, input costs continued to climb, prompted by rising product prices and wages. Correspondingly, output prices increased at the fastest rate since November 2024, as companies opted to pass these increased costs onto their clients. Looking forward, service providers expressed increased optimism for the coming year, highlighting plans for greater investment in 2026 and anticipating more favorable business conditions.

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