France services PMI improves, business optimism still subdued

The HCOB France Services PMI rose to 49.3 in December 2024, higher than the initial estimate of 48.2 and up from 46.9 in the previous month.

France services PMI improves, business optimism still subdued

This improvement was primarily driven by milder contractions in output and new orders, with new orders experiencing their smallest decline since last September. However, workforce numbers fell for the first time in four years, although marginally. Some companies reported redundancies, while others either did not renew temporary contracts or chose not to replace departing staff.

Inflation eases, business optimism rebounds but remains subdued

On the pricing front, inflationary pressures eased, with input costs and output charges rising at slower rates, both below their long-term averages. Looking ahead, business optimism rebounded from a four-and-a-half-year low the previous month, although it remained subdued by historical standards.