PARIS (Reuters) - France's private sector contracted for the ninth straight month in January, even though activity at manufacturers hit an eight-month high, a survey by data compiler Markit showed on Friday.
Markit's preliminary composite purchasing managers' index dged down to 49.5 in January after jumping to 49.7 in December.
In the services sector, the PMI stood at 49.5 in January, after moving above the 50 point that denotes expansion in activity last month. Analysts polled by Reuters had expected the device sector reading to rise to 50.7.
The manufacturing figure, however, jumped to an eight-month high of 49.5 this month, 1.4 points better than forecast and 2 points better than the final December reading.
"I see France hovering close to the stagnation mark for some time," Markit senior economist Rob Dobson said, adding that the PMIs for the euro zone's second-largest economy could rise above 50 at some point this year - but not far above it.
There have been large revisions between the flash and final
Markit PMI indexes in recent months. Final January figures are due out in early February.