France's services sector contracts further in April, final PMI shows

PARIS, May 6 (Reuters) - France's ‌services sector ​contracted ​in April, as demand weakened amid economic and political uncertainty linked to the Iran war, a ‌monthly survey by S&P Global showed on Wednesday.

The S&P ⁠Global France Services final PMI fell to 46.5 in April from 48.8 ‌in March, exactly in ‌line with an earlier, flash survey. That figure of 46.5 was its lowest level since February 2025.

Any figure below ​50 shows a contraction in activity, while above 50 shows expansion.

The France Composite final PMI for April, which ⁠includes both the services and manufacturing sectors, also fell to 47.6 from 48.8 in ​March, marking its lowest level since February 2025.

New orders in the services sector fell at the ​fastest rate since November 2023, with ‌firms citing slower client decision-making, inflationary pressures and geopolitical headwinds, S&P Global said.

Cost pressures also ⁠intensified, with input price inflation climbing to a 29-month high, driven by higher energy and raw material costs caused by the ⁠impact of the Iran war, it added.

"Services and manufacturing pulled the French ​economy in different directions in April. We should probably discount the factory expansion, though, which is likely to be fleeting due to front-loaded ‌ordering ahead of anticipated price increases," said Joe Hayes, principal economist at S&P Global Market ‌Intelligence.

"Services, on the other hand, has seen a significant hit ⁠to demand from increased uncertainty, ‌with activity in ​this part of the economy weakening as a result," Hayes added.

(Reporting by Sudip Kar-Gupta; Editing by Joe ‌Bavier)

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