France’s Services Sector Contracts Further in April as PMI Hits 46.5
April PMI Data Reveals Ongoing Challenges for French Services Sector
PARIS, May 6 (Reuters) - France's services sector contracted in April, as demand weakened amid economic and political uncertainty linked to the Iran war, a monthly survey by S&P Global showed on Wednesday.
PMI Figures and Sector Performance
The S&P Global France Services final PMI fell to 46.5 in April from 48.8 in March, exactly in line with an earlier, flash survey. That figure of 46.5 was its lowest level since February 2025.
Understanding the PMI Threshold
Any figure below 50 shows a contraction in activity, while above 50 shows expansion.
Composite PMI Trends
The France Composite final PMI for April, which includes both the services and manufacturing sectors, also fell to 47.6 from 48.8 in March, marking its lowest level since February 2025.
Factors Contributing to the Contraction
Decline in New Orders
New orders in the services sector fell at the fastest rate since November 2023, with firms citing slower client decision-making, inflationary pressures and geopolitical headwinds, S&P Global said.
Rising Cost Pressures
Cost pressures also intensified, with input price inflation climbing to a 29-month high, driven by higher energy and raw material costs caused by the impact of the Iran war, it added.
Expert Commentary
Analysis from S&P Global Market Intelligence
Manufacturing vs. Services Performance
"Services and manufacturing pulled the French economy in different directions in April. We should probably discount the factory expansion, though, which is likely to be fleeting due to front-loaded ordering ahead of anticipated price increases," said Joe Hayes, principal economist at S&P Global Market Intelligence.
Impact of Uncertainty on Services
"Services, on the other hand, has seen a significant hit to demand from increased uncertainty, with activity in this part of the economy weakening as a result," Hayes added.
(Reporting by Sudip Kar-Gupta; Editing by Joe Bavier)
