The HCOB France Services PMI fell to 48.9 in September 2025 from 49.8 in the previous month, worse than market expectations of 49.6, according to flash estimates. This marked the thirteenth consecutive month of contraction in the sector, primarily driven by a sharper decline in output following a period of stabilization midway through the third quarter. In addition, new orders continued to contract, marking the sixteenth consecutive monthly decline, as subdued customer demand remained a key factor weighing on activity levels. Despite the weak demand environment, September saw a second consecutive increase in private sector employment—the first instance of back-to-back gains in over a year. Job growth was recorded across both monitored sub-sectors, including services, although slowdowns were noted in both cases. On the price front, service providers reported a softer rise in input costs, while output prices fell amid reports of strong competitive pressures.

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