France’s services sector contracted in October 2026 at its fastest pace since May, with the final S&P Global France Services PMI Business Activity Index falling to 46.2 from 51.2 in September and below the preliminary estimate of 48.4. Readings below 50 indicate contraction. The downturn reflected subdued demand, tighter financial conditions, cautious client behavior, protests and rising government bond yields. New business declined at its fastest pace in five months, driven mainly by weaker domestic demand, although export orders edged higher. Employment fell for a sixth consecutive month as companies cited restructuring, retirements and the expiration of fixed-term contracts. Elevated fuel prices, supplier fees and wages kept cost pressures high, prompting service providers to raise selling prices. The broader S&P Global France Composite PMI fell to 46.6 from 51.1, also below its flash estimate of 48.4. Consumer confidence, measured by official INSEE data, reached its lowest level since June 2013. French service providers turned pessimistic about the 12-month outlook for the first time since April 2020.