French service sector contracted at a faster pace in December, detailed results of the survey by Markit Economics showed Friday. The services activity index fell to 45.
2 in December from 45. 8 in November. In contrast, the preliminary report had shown an increase in the reading to 46, which meant a slowdown in the pace of decline in business activity.
Nonetheless, an index reading below 50 suggests contraction. The activity in the French service sector has now fallen for five consecutive months.
The composite output index, that measures the performance of both manufacturing and service sectors, rose to a four-month high of 44. 6 in December from 44. 3 in November. The latest reading was slightly below the flash score of 45.
Business activity across the French private sector as a whole decreased further for a tenth successive month. However, the latest drop was the weakest since August.
New orders received by service providers declined at an accelerated pace in December. Also, the rate of contraction quickened to the sharpest since March 2009.
Composite data showed a steep pace of contraction in overall new business, with the rate of decline at a 45-month record.
French service sector firms reduced staff levels further in December. The latest drop in employment was the eighth in successive months and slightly sharper than in November.
However, French service providers signalled optimism regarding the 12-month outlook for activity in December, Markit said.
2013-1-4 13:09