France March final services PMI 47.9 vs 46.6 prelim

• Prior 45.3
• Composite PMI 48.0 vs 47.0 prelim
• Prior 45.1

The revisions point to a modest improvement in French business activity towards the end of Q1, though still in contraction territory. That said, one must take into context the disappointing momentum in following up the Olympics boom in Q3 last year. So, there’s that. In any case, this all now pre-tariffs data and that won’t matter all too much for markets in the big picture. HCOB notes that:

“The first quarter ends on a disappointing note for French service providers. Following a brief summer high in 2024, driven
by the Olympic Games, business activity in France remained in recession territory in March 2025, according to the HCOB
PMI. Despite a slight deceleration in the rate of contraction compared to the previous month, economic uncertainty and
reduced demand continued to weigh on services activity, as reported by surveyed companies.

“Service price growth has somewhat moderated. Input prices resumed a disinflationary trajectory. Where input costs rose,
wages were cited as the primary driver. Companies will hope that price pressures continue to ease amid significantly
shrinking demand. This is because it is becoming increasingly difficult for businesses to pass costs onto customers, with the
associated price index barely in growth territory.

“The sector’s outlook is dire. Both domestic and international order intakes continue to shrink, although the contraction in
overall new orders slowed compared to the previous month. This slight improvement does little to mask the overall weak
trend. Activity expectations for the next twelve months remain well below the long-term average. Unsurprisingly, companies
are responding to the bleak outlook by downsizing their workforces.”

This article was written by Justin Low at www.forexlive.com.