French business activity contracts at slower pace

|By:, SA News Editor

French services PMI increased to 48.9 (flash 48.6) in January from 47.8 in December.

Composite PMI 48.9 (48.5) vs 47.3.

"The rate of contraction eased as both activity and new business fell to a lesser extent than in December," says Markit. However, "job shedding quickened" while a widening gap between input and output prices implies pressure on profit margins. Business confidence remains "at a historically low level."

The CAC 40 (EWQ) is +0.2%, while the euro is flat at $1.352. (PR)