PARIS (Reuters) - The French private sector expanded at a much slower rate in April, surveys showed on Wednesday, underlining the fragility of the recovery in the euro zone's second-biggest economy.
Data compiler Markit's said its preliminary composite purchasing managers index, which tracks services and manufacturers and covers more than two-thirds of the economy, fell in April to 50.5 from 51.8 in March.
Last month, the private sector returned to growth and posted the fastest rate of expansion since January 2012, buoying hopes for a lasting upturn. It was the first time since October that the index had risen above the 50 mark dividing expansions in activity from contractions.
"We've come down from that, but I wouldn't get too worried that it's moved in the wrong direction," said Markit Chief Economist Chris Williamson.
He added, however: "It's not going to be a great quarter."
"France remains very much a laggard when you compare it to ... Germany and the robust growth in the rest of the region," he said. "France is still looking weak."
Output growth have risen at weaker rates in both the services and manufacturing sectors this month, with new business stagnant.
The PMI for the service sector fell to 50.3 from March's final reading of 51.5, while that for the manufacturing sector fell to 50.9 from 52.1 last month. Both fell short of consensus forecasts of 51.4 and 51.9, respectively.
Staffing levels were cut at a sharper rate, with employment in the French private sector falling for the sixth month straight. Clients remained in "cost-cutting mode" and reporting a hesitancy to hire, Markit said.
"Firms (in France) are not as buoyant as in other countries ... in terms of commitment to hire staff," Williamson said.
With business recovering in much of Europe, the weak performance in France adds to the pressure on President Francois Hollande as he tries to revive the struggling corporate sector by tying tax breaks for businesses to new targets for hiring and investing.
(Reporting By Alexandria Sage; Editing by Andrew Callus and Hugh Lawson)