PARIS, March 4 (Reuters) - France's services sector remained in contraction territory for the second consecutive month in February, as demand weakened and exports fell sharply, a survey by S&P Global
French Services Sector Remains in Contraction as PMI Shows Weak Demand in February
Overview of France's Services Sector Performance in February
PMI Data and Sector Activity
PARIS, March 4 (Reuters) - France's services sector remained in contraction territory for the second consecutive month in February, as demand weakened and exports fell sharply, a survey by S&P Global showed on Wednesday.
The final HCOB France Services PMI rose slightly to 49.6 in February from 48.4 in January but stayed below the 50.0 threshold that separates growth from contraction, indicating a very marginal slowdown in overall services sector activity.
Demand, Employment, and Sales Trends
Declining Demand and Export Performance
Demand for French services continued to decline, marking the third consecutive month of weakening sales, particularly from international clients. Despite this, employment in the sector saw a modest increase for the second month in a row, with the rate of job creation reaching a four-month high.
Expert Commentary
"France's private sector is lacking momentum. Although the composite index has edged up slightly, the overall level remains far from encouraging," said Hamburg Commercial Bank economist Jonas Feldhusen.
Outlook and Price Developments
Business Optimism and Future Prospects
Despite the current challenges, service providers remain optimistic about growth prospects over the next 12 months, driven by plans to launch new offerings and expand client bases.
Input and Output Price Trends
Input price inflation eased to a four-month low, although firms reported higher costs for hardware and fuel. Output prices increased marginally as companies attempted to pass on these costs to customers.
Composite PMI and Private Sector Activity
Combined Manufacturing and Services Data
The composite PMI, which combines both manufacturing and services sectors, rose to 49.9 in February from 49.1 in January, indicating private sector business activity held steady.
Reporting and Editorial Credits
(Reporting by Makini Brice; Editing by Hugh Lawson)
