France Service Sector Contraction Worse Than Expected

(RTTNews) - France's services sector contracted at a faster-than-expected rate in November that was the weakest in nine months, survey results from Markit Economics showed Wednesday.

The Services Purchasing Managers' Index dropped to 47.9 from 48.3 in October. That was worse than the flash estimate of 48.8.

The Composite PMI declined to 47.9 from 48.2. That score was also the lowest in nine months.

A PMI reading below 50 indicates contraction in the sector. French service sector activity declined for a third month in a row.

New business declined for a third successive month and at the sharpest rate since June 2013. Firms blamed tough economic situation, weak confidence and slow decisions by clients. Orders for the overall private declined at the sharpest rate in 17 months as manufacturing logged a faster decrease than services.

French service sector firms continued to shed jobs in November, albeit at a slower pace. Job cuts extended into a thirteenth month. Overall private sector saw employment fall at the slowest pace in three months.

The pace of decline in output prices for the private sector eased from a 5-year record. Input prices increased moderately.