PARIS, Jan 6 (Reuters) – France’s services sector stagnated in December, rounding off a flat fourth quarter, as new business and employment levels remained virtually unchanged, a survey by S&P Global showed on Tuesday.
The HCOB France Services final PMI fell to 50.1 points in December from 51.4 in November. A reading above 50 signals growth, while below 50 indicates contraction.
The final services figure was a touch weaker than the flash December reading of 50.2 points.
The final December composite PMI, which includes both services and the manufacturing sectors, also fell to 50.0 points from 50.4 in November, and a shade below a flash December composite PMI figure of 50.1 points.
Hamburg Commercial Bank economist Jonas Feldhusen said businesses had been impacted by ongoing political uncertainty, and subdued demand from the U.S.
“France’s private sector ended the year in stagnation. The past year has been marked by uncertainties such as external headwinds emanating from U.S. policy and Germany’s economic slowdown, but most principally the domestic challenges relating to France’s fragile political environment,” said Feldhusen.
“Alongside weaker activity, new orders disappointed, particularly export orders, with panelists citing subdued demand from the U.S. market,” he added.
(Reporting by Sudip Kar-Gupta; Editing by Hugh Lawson)
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