French Service Sector Contracts More Than Expected In November - InvestingChannel

French Service Sector Contracts More Than Expected In November

French service sector contracted at a faster rate rate than initially estimated in November, data from a survey by Markit Economics and CDAF showed Wednesday.

The seasonally adjusted purchasing managers’ index (PMI) for the service sector increased to 45.8 in November from 44.6 in October. Preliminary estimates had shown a reading of 46.1. A reading below 50 indicates contraction in the sector, while one above suggests growth.

New business received by service sector firms fell at the sharpest rate since April 2009, marking the eighth successive decline. Service providers reduced their workforces at a slower rate in November.

Input prices faced by service sector firms continued to rise, in line with the trend seen since January 2010. The rate of inflation was the sharpest since February. In contrast, prices charged decreased in November, but the rate of fall was the slowest since August.

Meanwhile, the composite output index, which measures activity in both the manufacturing sector and the service sector, increased to a three-month high of 44.3 in November from 43.5 in October. Initially, the index was estimated to rise to 44.6.

by RTT Staff Writer

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