FX.co ★ French Private Sector Improves More Than Expected

In July 2025, the HCOB Flash Composite PMI for France increased to 49.6 from June's 49.2, surpassing market expectations of 49.3, as indicated by flash estimates. This marks the eleventh consecutive month of contraction, yet it is the least severe decline within this period. The downturns in manufacturing (rising to 48.4 from 48.1 in June) and services (slightly up to 49.7 from 49.6) showed signs of easing. Despite these slight improvements in the overall figures, demand conditions for manufacturing and services worsened, particularly affecting the manufacturing sector. Additionally, businesses in France continued to downsize their workforce in July. On the pricing front, data for July suggested weak inflationary pressures, as both input costs and output prices increased at rates below their long-term averages. Lastly, the outlook for French businesses took a downturn, reaching its lowest point since November of the previous year, with both manufacturers and service providers experiencing notable drops in confidence.