PARIS, Oct 1 (Reuters) - French factory activity shrank at a slower rate in September as new orders declined less rapidly and manufacturers cut fewer jobs, a survey showed on Wednesday.
In its monthly snapshot of activity in the long-struggling sector, data compiler Markit said its final purchasing managers' index rose to 48.8 in September from 46.9 in August, unchanged from its preliminary reading for the months.
It was the highest figure in four months but left the index below the 50 line denoting growth for the fifth month running.
The sector registered smaller contractions in output, new orders and employment, although all continue to weigh on the outlook for the euro zone's second-biggest economy.
"There seems to be no end in sight to the persistently weak demand environment, and the PMI data suggest that the manufacturing sector will have weighed on GDP throughout the third quarter," said Markit senior economist Jack Kennedy.
The more modest job shedding in September - the weakest rate since May - was likely due to firms reorganising and not replacing workers who leave, Markit said.
Panellists surveyed said demand conditions were "generally fragile," especially in the domestic market.
(Reporting by Alexandria Sage; Editing by Hugh Lawson)