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05.08.202607:50:00UTC+00French Private Sector Activity Nears Growth Territory as HCOB Composite PMI Climbs to 49.4 in July

France’s private sector showed signs of stabilisation in July, with the HCOB France Composite PMI edging up to 49.4, compared with a previous reading of 47.2. The latest figure, covering July 2026 and updated on 5 August 2026, indicates that overall business activity remains just below the 50.0 threshold that separates contraction from expansion, but the gap has narrowed notably.

The improvement in the composite index suggests that the downturn in French private sector output is easing, even though the economy has not yet returned to outright growth. While the data continue to signal a marginal decline in activity, the move closer to the neutral 50 mark may be interpreted by market participants as an early sign of stabilising conditions within both manufacturing and services.

Although still in contractionary territory, the progression from 47.2 to 49.4 within the same month reflects a clear softening of the previous weakness. Investors and policymakers will be watching upcoming releases to see whether this upward momentum can be sustained and potentially tip the French economy back into expansion in the coming periods.

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