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France’s private sector showed little sign of meaningful growth in February, with business activity remaining broadly flat at the start of the year, according to a closely watched monthly survey released on Friday.
The HCOB Flash France Services Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 49.6 points in February, marking a two-month high. Despite the modest improvement, the index remained below the 50-point threshold that separates expansion from contraction for the second consecutive month, indicating continued weakness in the country’s dominant services sector.
The reading came in slightly above market expectations. A Reuters poll had forecast the February services PMI at 49.2, while the final January figure stood at 48.4.
Conditions deteriorated in the manufacturing sector, where the flash PMI fell to 49.9 points from 51.2 in January. The figure undershot expectations of 51.0 and signaled a return to contraction after briefly moving back into expansion territory at the start of the year.
The flash composite PMI, which combines services and manufacturing activity, edged up to 49.9 in February from 49.1 in January, and marginally exceeded the Reuters forecast of 49.7. However, the index remained just below the expansion threshold, underscoring the lack of momentum across the broader private sector.
Survey details pointed to ongoing demand-side weakness. New business inflows declined for a third straight month and at the fastest pace since July last year, with exports emerging as a key drag on order books. Employment growth also stalled, as job cuts in manufacturing offset modest hiring gains in the services sector.
Overall, the data suggest that France’s economy continues to struggle to gain traction, with fragile demand, weak external conditions, and uneven sectoral performance limiting any meaningful recovery in private sector activity.
