Finance
French services sector contracts further in April, PMI shows
Published by Global Banking & Finance Review®
Posted on May 6, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 6, 2025
2 min readLast updated: January 24, 2026
The French services sector contracted for the eighth month in April, with the PMI Index dropping to 47.3. New orders fell sharply, and employment continued to decline.
PARIS (Reuters) -
France's dominant services sector contracted for the eighth consecutive month in April, as new orders fell sharply, a survey showed on Tuesday.
The HCOB France Services PMI Index, compiled by S&P Global, dropped to 47.3 in April from 47.9 in March, indicating a faster pace of contraction in the sector. Any reading below 50 signals a contraction in activity.
The final April figure was up from a flash services PMI reading of 46.8.
The survey highlighted a rapid and accelerating decrease in new orders, with demand conditions remaining weak and competitive pressures keeping prices charged stable.
"April marked another month of declining activity in the French private sector," said Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank.
"The French services sector remains on a downward trajectory. Business activity declined again in April, attributed to lower customer demand and generally poorer market conditions," Feldhusen said.
Despite the ongoing contraction, French services companies showed a slight increase in optimism regarding the 12-month outlook, although confidence remained below historical averages due to global uncertainties.
Employment in the sector continued to decline, with firms citing recruitment difficulties and non-replacement of leavers as common methods for reducing workforce capacity.
The composite PMI, which includes both manufacturing and services, declined to 47.8 in April, from 48.0 in March.
The final April figure was up from a flash composite PMI reading of 47.3.
(Reporting by Dominique Vidalon; Editing by Toby Chopra)
The article discusses the contraction of the French services sector in April, as indicated by the PMI Index.
A PMI reading below 50 signals a contraction in the sector's activity.
Employment in the French services sector continued to decline due to recruitment difficulties and non-replacement of leavers.
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