FX.co ★ French Private Sector Remains Strained

In March 2025, the HCOB France Composite PMI was marginally revised to 48, following an initial flash estimate of 47, and surpassing February's 13-month low of 45.1. France's private sector experienced its seventh consecutive month of contraction. However, the decline was modest and marked the mildest downturn since October. Manufacturing activity saw a minor increase, with the PMI rising to 48.5 from February's 45.8, indicating the gentlest contraction in over two years. Similarly, the services sector slightly improved, with a PMI of 47.9 compared to 45.3, although it remained in a downturn. March observed a softer decline in output and a more gradual reduction in new business. Employment decreased for the fourth consecutive month, yet the rate of job losses was the most moderate during this period. Furthermore, inflationary pressures lessened, with only a slight rise in selling prices and the smallest increase in operating costs for the year. There was also an uptick in business confidence, although the outlook stayed cautious compared to historical standards.