French services PMI contracts as demand weakens in October

The HCOB France Services PMI was slightly revised upward to 49.2 in October 2024 from an initial estimate of 48.3, although it remained below September’s reading of 49.6.

French services PMI contracts as demand weakens in October

This marked the steepest contraction in the French services sector since March, driven by ongoing weak demand. New business, especially from abroad, fell significantly, with export orders dropping at their fastest rate in five months. Employment levels within the sector stagnated. On the price front, input costs slightly increased, but overall inflation remained near a three-and-a-half-year low, staying below the survey’s long-term average.

Firms raise prices modestly as growth expectations decline

Consequently, firms raised their prices for the first time since August, but at a modest pace. Looking forward, business growth expectations declined sharply compared to September.