Finance
French private sector stagnates amid weak demand, PMI shows
Published by Global Banking & Finance Review®
Posted on February 20, 2026
2 min readLast updated: February 20, 2026
Quick Summary
France’s private sector stalled in February as HCOB PMIs showed services at 49.6 and manufacturing at 49.9. New orders shrank, exports dragged, jobs stagnated, and prices diverged across sectors.
France’s Private Sector Flat as Weak Demand Weighs, Flash PMI Signals
February PMI Signals Stagnation in France
PARIS, Feb 20 (Reuters) - France's private sector economy showed little sign of growth in February, with business activity levels virtually unchanged from the start of the year, according to a monthly survey published on Friday.
Services Activity at 49.6
The HCOB Flash France Purchasing Managers' Index for the country's dominant services sector, compiled by S&P Global, came in at 49.6 points in February, a two-month high.
But that index has now stayed below the 50-point threshold separating growth from contraction for the second month running.
A Reuters poll forecast for the February flash services PMI stood at 49.2 and the final January figure was 48.4.
Manufacturing Eases to 49.9
The flash manufacturing PMI for this month fell to 49.9 points, down from 51.2 in January and below a Reuters poll forecast for a figure of 51.0 points.
Composite PMI Ticks Up to 49.9
The flash February composite PMI, which comprises both the services and manufacturing sectors, reached 49.9 points, up from 49.1 in January and above a forecast for a figure of 49.7.
New Orders and Employment
New business inflows shrank for the third consecutive month and at the fastest rate since last July, with exports posing a significant drag on overall order books. Employment stagnated after months of growth, as job cuts in manufacturing offset slight gains in the services sector.
Economist Commentary
"The French private sector is still struggling to gain real momentum. Since last November, the HCOB Composite PMI has been hovering around the 50.0-point growth threshold, implying that any real progress remains absent," said Jonas Feldhusen, junior economist at Hamburg Commercial Bank.
Diverging Price Trends
Price dynamics varied across sectors, with service companies offering discounts while prices for manufactured goods rose at their quickest rate in a year-and-a-half. Overall selling prices fell for the first time in three months, and input cost inflation eased to a four-month low.
(Reporting by Benoit Van Overstraeten; Editing by Joe Bavier)
Key Takeaways
- •HCOB Flash France Services PMI rose to 49.6 in February but stayed below 50 for a second month.
- •Manufacturing PMI slipped to 49.9 from 51.2, indicating a loss of momentum.
- •Composite PMI edged up to 49.9 from 49.1, still signaling near-stagnation.
- •New business fell for a third month, with exports a key drag on order books.
- •Prices diverged: services offered discounts while goods prices rose; overall selling prices fell.
Frequently Asked Questions about French private sector stagnates amid weak demand, PMI shows
1What is the main topic?
The article covers February’s HCOB Flash France PMI results, showing the French private sector stagnating amid weak demand, with services and manufacturing both hovering near the 50 threshold.
2How did services and manufacturing perform?
Services improved to 49.6 but remained in contraction, while manufacturing slipped to 49.9, indicating near-stagnation in both sectors.
3What drove the slowdown?
New orders declined for a third month, exports dragged on demand, and employment flattened as manufacturing job cuts offset modest gains in services.
