Private sector activity shrank for a seventh straight month, but domestic orders stabilized demand and easing inflation pressures offered some relief.
France's S&P Global France Composite PMI climbed to 49.4 in July 2026 from 47.2 in June, coming in just below market expectations of 49.6 and pointing to the mildest contraction in private sector activity in three months. The reading remained below the 50.0 mark, which separates expansion from contraction, for a seventh consecutive month. Demand for goods and services broadly stabilized as a renewed pickup in domestic orders helped counter another sharp fall in export business. Overall activity still edged lower, though only marginally, while companies reduced backlogs more quickly and cut staff at a faster pace. Price pressures also moderated across the private sector, with slower increases in both input costs and prices charged. Confidence about the outlook improved further, but sentiment stayed historically weak as businesses remained wary of the political environment and higher interest rates.