French economic activity contracts at fastest pace in 5-1/2 years in May, PMI shows

PARIS - France's private sector economy contracted in May at its sharpest pace in five-and-a-half years, reflecting an accelerated decline in services activity and a fresh drop in manufacturing production, a preliminary survey from S&P Global showed on Thursday.

The steepest contraction since late 2020 was a consequence of the war in the Middle East, according to firms, who frequently cited fuel and energy cost pressures, as well as general economic angst, as reasons for lower output.

The S&P Global Flash France Purchasing Managers Index for services fell to 42.9 points in May from 46.5 in April, a 66-month low. That was below a Reuters poll for 46.6.

Any figure below 50 shows a contraction in activity, while a reading above 50 points to expansion.

The flash manufacturing May PMI fell to 48.9 points from 52.8 in April, and below a Reuters forecast of 52.2 points.

The composite PMI Index, which includes both services and manufacturing, fell to 43.5 points in May from 47.6 in April, a 66-month low.

"May's 'flash' PMI survey for France provides a dire set of numbers. The inflationary impact of the oil-price shock continues to proliferate, with price indices in both manufacturing and services moving higher once again," said Joe Hayes, principal economist at S&P Global Market Intelligence.

"Alarmingly, we saw private sector new orders plummet in May, giving us a clear indication that this shock has materially lifted recession risks for the euro zone's second-largest economy," he added.

(Reporting by Dominique Vidalon; Editing by Toby Chopra)

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This story was originally published May 21, 2026 at 1:42 AM.