The French private sector growth slowed to a four-month low in December, flash data from Markit showed Wednesday.
The flash composite output index fell to 50.3 in December from 51 in November. A reading above 50 indicates expansion.
The drop in the headline index reflected a stagnation of service sector business activity, ending a ten-month period of expansion. In contrast, manufacturing sector output rose albeit at a slightly faster pace.
The services Purchasing Managers’ Index dropped to a 11-month low of 50 in December from 51.0 in November. It was expected to fall slightly to 50.8.
Meanwhile, the flash manufacturing PMI rose to a 21-month high of 51.6 from 50.6 in November. Economists had forecast the reading to remain unchanged in December.
“PMI data for the fourth quarter as a whole suggest that GDP growth is likely to have remained at a similar moderate pace to the 0.3 percent rise seen in the previous quarter,” Jack Kennedy, senior economist at Markit, said.
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