France

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The final May PMI data paint a mixed picture for the Eurozone economy.

The HCOB Eurozone Services PMI rose to 47.7, comfortably above the 46.4 forecast and slightly higher than April's 47.6. While this is an improvement, the index remains below the 50 threshold, indicating that the services sector is still contracting, albeit at a slower pace.

More importantly, the HCOB Eurozone Composite PMI, which combines manufacturing and services activity, came in at 48.5. This was stronger than the 47.5 consensus estimate but slightly below April's 48.8.
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Author
WS Investor 06-03-26
France's HCOB Services PMI fell to 44.3 in May, beating expectations of 42.9 but declining sharply from 46.5 in April.
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Author
WS Investor 06-03-26
Eurozone inflation accelerated in May, reinforcing concerns that underlying price pressures remain persistent despite the European Central Bank’s easing efforts. Headline CPI rose 3.2% year-over-year, matching expectations and increasing from 3.0% in April, while monthly inflation slowed sharply to 0.1% from 1.0% previously.

More importantly for policymakers, core inflation—which excludes volatile food and energy prices—climbed to 2.5% year-over-year, exceeding expectations of 2.4% and accelerating from 2.2% in April. The stronger-than-expected core reading suggests that underlying inflationary pressures remain more stubborn than anticipated.
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Author
WS News 06-02-26
Eurozone manufacturing activity remained in expansion territory in May, but the pace of growth slowed more than expected. The HCOB Eurozone Manufacturing PMI declined to 51.6 from 52.2 in April, although it still came in slightly above economists' expectations of 51.4.
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Author
European Investor 06-01-26
France's manufacturing sector moved closer to stabilization in May, with activity contracting at a much slower pace than expected. The HCOB France Manufacturing PMI rose to 49.7, significantly above forecasts of 48.9, although still below April's 52.8 reading.
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Author
European Investor 06-01-26
France’s economy grew 0.9% year over year in the first quarter, missing expectations of 1.1% and slowing from the previous 1.3% growth rate.
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Author
WS News 05-29-26
Eurozone business activity weakened further in May, with the HCOB Services PMI falling to 46.4 from 47.6, missing expectations of 47.8 and signaling a deeper contraction in the services sector. Meanwhile, the HCOB Composite PMI declined to 47.5 from 48.8, also below forecasts of 48.8, indicating that overall private sector activity across the eurozone continued to deteriorate. The figures point to slowing economic momentum and reinforce concerns about weak growth conditions in the region.
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Author
The Investor 05-21-26
France’s manufacturing sector unexpectedly slipped back into contraction territory in May, with the HCOB Manufacturing PMI falling to 48.9 from 52.8, well below expectations of 52.1. At the same time, the services sector weakened sharply, as the HCOB Services PMI dropped to 42.9 from 46.5, missing forecasts of 46.6. The data signals a significant deterioration in French business activity and raises concerns over slowing economic momentum in the eurozone’s second-largest economy.
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Author
The Investor 05-21-26
Eurozone inflation accelerated to 3.0% year-over-year in April, matching expectations and rising from 2.6% previously, while core inflation eased slightly to 2.2% from 2.3%, in line with forecasts.
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Author
European Investor 05-20-26
Eurozone Trade Surplus Narrows in March

The Eurozone recorded a trade surplus of €7.8 billion in March, above market expectations of €5.4 billion but down from the previous €11.1 billion surplus.
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Author
WS Investor 05-19-26
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