Published by Global Banking & Finance Review®
Posted on March 24, 2026
2 min readLast updated: March 24, 2026
Add as preferred source on GoogleFrance’s private sector contracted in March at its sharpest pace since October, with both services and manufacturing dipping below the 50‑point growth threshold amid weak demand, geopolitical supply issues, and pre‑election caution.
PARIS, March 24 (Reuters) - France's private sector contracted in March at its fastest pace since October, hit by weak demand, Iran war-linked supply disruptions and client caution ahead of local elections, a business survey showed on Tuesday.
The S&P Global Flash France Composite PMI Output Index, a preliminary estimate, fell to 48.3 in March from 49.9 in February, a survey by S&P Global showed.
The 50-mark separates growth from contraction.
"April may give us a better indication of the true state of the economy, but for now, France's burgeoning recovery looks to be on ice," said S&P Global Market Intelligence economist Joe Hayes.
Services activity weakened further, with the flash services index falling to 48.3 from 49.6, its lowest in five months.
Manufacturing output also slipped back into decline for the first time this year, with the related subindex dropping to 48.5 from 51.6, a four-month low, even as the flash manufacturing index edged up to 50.2 from 50.1.
Overall new business fell at the sharpest rate since last July, while international demand for French goods and services declined at the steepest pace in 15 months, the survey showed.
Cost pressures intensified sharply. Composite input price inflation was the strongest since November 2023, while supplier delivery delays were the most widespread in just over three years and manufacturers raised selling prices at the fastest pace since March 2023.
Business confidence weakened markedly, reversing much of the improvement seen since the start of 2026, as firms cited risks to demand and inflation from the Middle East war.
(Reporting by Reuters; Editing by Hugh Lawson)
The contraction was driven by weak demand, supply disruptions linked to Iran war, and client caution ahead of local elections.
The S&P Global Flash France Composite PMI Output Index fell to 48.3 in March from 49.9 in February.
Services activity weakened with an index of 48.3, while manufacturing output slipped back into decline with a subindex of 48.5.
Yes, input price inflation was the strongest since November 2023, and manufacturers raised selling prices at the fastest pace since March 2023.
Business confidence weakened markedly, reversing much of the improvement seen since the start of 2026.
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