Activity in France's dominant services sector fell for an eighth month in a row and at the sharpest pace since September, a monthly survey showed on Wednesday.
The HCOB France flash Purchasing Managers Index (PMI) for the country's dominant services sector, compiled by S&P Global, came in at 45.0 points in January, below a 46-point forecast in a Reuters poll. It was the worst reading in four months.
A separate index combining data from the services and manufacturing sectors came in at 44.2, also the lowest reading in four months.
"The French economy is kicking off 2024 on a slow note. The latest HCOB Flash PMIs show a depressing picture overall," said Norman Liebke, an economist at Hamburg Commercial Bank.
The survey showed lower activity levels at clients, uncertainty towards the outlook and general weakness across the economy were weighing on demand.
However, there were some signs that the euro zone's second-biggest economy could see some improvement going forward.
"Even though activity fell for an eighth month, new business overall and from abroad fell at a slower pace. Employment even increased for another month, although only marginally," Liebke said.
