France services PMI drops to 48.3, sharpest decline since March

According to preliminary estimates, the HCOB France Services PMI fell to 48.3 in October 2024, down from 49.6 in September and below market expectations of 49.9.

France services PMI drops to 48.3, sharpest decline since March

This decline represents the steepest contraction in the French services sector since March, driven by reduced output amid ongoing weak demand. Additionally, new businesses, especially from international markets, experienced a significant drop, with export orders declining fastest since May 2020. In response to this slowing demand, service providers cut their workforce in October, marking a notable change.

Cost pressures ease as input price inflation hits four-year low

Although selling prices slightly increased, cost pressures eased considerably, with input price inflation hitting its lowest point in nearly four years. Looking ahead, firms' growth expectations sharply declined at the start of the fourth quarter, reaching an 11-month low.