The HCOB France Services PMI fell to 50.2 in December 2025 from 51.4 in the previous month, flash estimates showed. Still, the PMI remained in expansion territory for the second consecutive month, supported by a modest increase in output amid growth in new and existing business. Backlogs of work also fell at the fastest pace since July, indicating the completion of projects. Moreover, employment in the sector rose marginally. Conversely, new business contracted amid subdued demand, linked to uncertainty surrounding the government budget, postponed non-essential client spending, weaker customer activity, and a sluggish market environment. On the pricing front, input cost inflation moderated and remained well below its long-term trend, while output charges were broadly unchanged. Finally, the HCOB Future Output Index declined further below its historical average, signaling relatively subdued expectations for the year ahead.

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