France’s private sector returned to expansion in September at its strongest pace in more than two years, ending a sustained contraction that began at the start of the year. The preliminary S&P Global Flash France Composite Output Index rose to 51.2 from 48.5 in August, beating the 48.7 market forecast. A reading above 50 indicates growth. Services provided most of the momentum, with the Flash France Services PMI Business Activity Index climbing to 51.4 from 48.0, its highest level in 10 months. Manufacturing output growth slowed and remained marginal. Demand improved only modestly: new orders increased for the first time in 10 months, while new foreign business recorded its mildest contraction of the year to date. Companies reduced staffing for a fifth consecutive month, citing redundancies, resignations and the non-renewal of temporary contracts. Input costs and output charges rose at their fastest rates since May, driven by higher fuel, energy, metals and component prices. Business expectations deteriorated again, leaving French companies at their least optimistic about the year ahead since May amid higher interest rates, political uncertainty and international competition.