France PMI Services

The HCOB France Services PMI shrank to 45.7 in November 2024, down from 49.2 in October and worse than the market expectations of 49, preliminary estimates showed. This marked the sharpest contraction in the French services sector since January, driven by political and economic uncertainty that dampened client spending. New orders posted a sharper fall, prompting French businesses to allocate more resources toward clearing backlogs of work. Subsequently, outstanding business volumes declined for the sixteenth consecutive month, marking the steepest reduction in four years. Meanwhile, employment in the sector saw a renewed uptick, recording the strongest hiring rate in six months. On the pricing front, cost pressures intensified. Input prices reached a three-month high, prompting service providers to raise output charges. Looking ahead, growth expectations turned pessimistic for the first time since May 2020, stemming from persistently weak demand.