PARIS,(Reuters) - The French private sector downturn eased in December as the services industry came close to expanding, suggesting business conditions may have bottomed out, data compiler Markit said in a survey on Tuesday.
Markit's preliminary services purchasing managers' index (PMI) rose to 49.8 in December from 47.9 last month, beating a consensus forcast for a 48.3 reading.
New business grew for the first time in four months in the services sector and business expectations were at their highest level since March.
The manufacturing industry continued its slide, however, dropping to a four-month low of 47.9 while analysts polled by Reuters had expected a slight improvement from November.
"There are signs that maybe a bottom has been reached in France," Markit chief economist Chris Williamson said, adding that both the services index and the overall composite PMI reading could rise in January above the 50 mark denoting growth.
The services sector last grew in August according to Markit's PMI index, and the composite purchasing managers' index, covering both the services and manufacturing sectors, has not shown an expansion in activity since April.
The composite purchasing managers' index rose to 49.1 in December from 47.9 in November, contracting at the slowest pace in four months.
"Resumption of growth in services will pull the overall sector PMI above 50 in January provided we continue to see the improvement we've seen, especially in relation to new orders," Williamson said.
France's INSEE statistics office, which has reported improvements in business morale over the past few months, will publish its index for December on Friday.
(Reporting by Ingrid Melander; Editing by Hugh Lawson)