France's services PMI rose to 49.6 in June, with the contraction rate being the slowest in nine months.

Standard & Poor's Global released data on Thursday showing that in June, the French service industry showed signs of stabilizing, with the rate of contraction slowing to the lowest level in nine months. The final reading of the HCOB French services purchasing managers' index rose from 48.9 in May to 49.6 in June, slightly higher than the preliminary reading of 48.7. Despite still being below the 50 expansion-contraction line, it indicates that service sector activity is only slightly contracting. At the same time, the composite PMI fell slightly from 49.3 to 49.2, but remained higher than the preliminary reading of 48.5, reflecting a limited overall contraction in both manufacturing and service industries. Jonas Feldhusen, economist at Hamburg Commercial Bank, pointed out that the survey shows a rebound in new export orders and improved business confidence, but potential tariff measures expected to be decided by US President Trump on July 8 may temporarily dampen market sentiment. Feldhusen's analysis states, "Inflationary pressures are easing and monetary policy restrictions are weakening, which is expected to support household consumption and business investment over the next year. However, in the context of weak demand, service sector businesses are still considering reducing their workforce sizes."