The HCOB France Services PMI rose to 49.7 in August 2025 from 48.5 in July, indicating a move toward stabilization and coming in better than market expectations of 48.5, flash estimates showed.

This marked the highest reading in a year, reflecting a softer decline in output compared to the previous month.

Additionally, the contraction in new business softened, indicating a gradual easing of demand pressures.

Moreover, employment in the services sector improved, with firms increasing both permanent and temporary hires, resulting in the strongest job creation since April 2024.

On the cost front, input inflation accelerated, driven by rising wages and higher raw material prices.

As a result, service providers raised their selling prices for the third consecutive month, though only modestly, as intense competition limited pricing power.

Finally, business confidence in the services sector remained muted, weighed down by concerns about future demand and broader economic challenges.