PARIS (Reuters) - French manufacturing shrank in May after recording the first two months of growth since mid-2011 in March and April, a survey showed on Monday, as the sector struggled to get back on its feet.
Data compiler Markit said its final purchasing managers' index fell to 49.6 in May from 51.2 in April. That was slightly up from an initial reading of 49.3 but still below the 50-point line dividing expansions in activity from contractions.
Weak consumer spending and business investment brought the French economy to a standstill in the first quarter of the year, with inventory changes and public spending the only factors keeping it from contracting.
"The disappointing data paint a picture of a sector struggling to generate any sort of traction in recovery, with the survey’s main indices averaging close to stagnation levels over the last six months," Markit economist Jack Kennedy said.
Purchasing managers questioned by Markit said softer demand and tight client budgets had dragged new orders lower in May for the first time in three months.
(Reporting by Nicholas Vinocur; Editing by Hugh Lawson)