21.08.202507:31:18UTC+00France Services Sector Nears Stabilization

The HCOB France Services PMI increased to 49.7 in August 2025, up from 48.5 in July, suggesting a trend towards stabilization and surpassing market expectations of 48.5, according to flash estimates. This represents the highest index reading in a year, indicating a milder decline in output compared to the previous month. Additionally, the contraction in new business demand has decreased, signaling a gradual reduction in demand pressures. Employment within the services sector saw improvements as firms bolstered their workforce with both permanent and temporary hires, achieving the most robust job creation since April 2024. On the cost side, input inflation has risen, propelled by escalating wages and higher raw material prices. Consequently, service providers have increased their selling prices for the third consecutive month, though the hikes have been modest due to strong competitive forces limiting pricing strength. Lastly, business confidence within the services sector continues to be subdued, dampened by concerns over future demand and broader economic challenges.