PARIS, March 24 (Reuters) - France's private sector contracted in March at its fastest pace since October, hit by weak demand, Iran war-linked supply disruptions and client caution ahead of local
France’s Private Sector Contracts Rapidly Amid Demand Weakness and Supply Delays
Key Findings from the March Business Survey
Private Sector Performance and Economic Indicators
PARIS, March 24 (Reuters) - France's private sector contracted in March at its fastest pace since October, hit by weak demand, Iran war-linked supply disruptions and client caution ahead of local elections, a business survey showed on Tuesday.
The S&P Global Flash France Composite PMI Output Index, a preliminary estimate, fell to 48.3 in March from 49.9 in February, a survey by S&P Global showed.
The 50-mark separates growth from contraction.
Expert Commentary on Economic Outlook
"April may give us a better indication of the true state of the economy, but for now, France's burgeoning recovery looks to be on ice," said S&P Global Market Intelligence economist Joe Hayes.
Sector-Specific Trends
Services Sector Weakness
Services activity weakened further, with the flash services index falling to 48.3 from 49.6, its lowest in five months.
Manufacturing Sector Developments
Manufacturing output also slipped back into decline for the first time this year, with the related subindex dropping to 48.5 from 51.6, a four-month low, even as the flash manufacturing index edged up to 50.2 from 50.1.
New Business and International Demand
Overall new business fell at the sharpest rate since last July, while international demand for French goods and services declined at the steepest pace in 15 months, the survey showed.
Cost Pressures and Business Sentiment
Input Prices and Supplier Delays
Cost pressures intensified sharply. Composite input price inflation was the strongest since November 2023, while supplier delivery delays were the most widespread in just over three years and manufacturers raised selling prices at the fastest pace since March 2023.
Business Confidence and Outlook
Business confidence weakened markedly, reversing much of the improvement seen since the start of 2026, as firms cited risks to demand and inflation from the Middle East war.
(Reporting by Reuters; Editing by Hugh Lawson)
