PARIS, Feb 3 (Reuters) - France's services sector
contracted in January due to a fall in new orders, according to
a monthly survey, although the decline was not quite as sharp
as first forecast.
S&P Global's final services purchasing managers index (PMI)
for January gave a figure of 49.4 points - down a touch from
49.5 points in December but slightly above a flash PMI survey
which had given a January figure of 49.2 points.
Any figure above 50 points shows an expansion in activity,
while a number below 50 shows a contraction.
S&P Global's final composite PMI number for January - which
comprises both the services and manufacturing sectors - came in
at 49.1 points, slightly above a flash January composite PMI
figure of 49.0 points.
Preliminary French fourth quarter gross domestic product
figures this week showed growth of 0.1%, but economists say
there is still a risk of a recession in France as the euro
zone's second-biggest economy faces inflationary pressures.
"While it's clear from the PMI surveys that France's economy
has been contracting since last November, declines thus far have
only been marginal," said Joe Hayes, senior economist at S&P
Global Market Intelligence.
"That said, of concern will be the still-elevated rate at
which input costs are rising, with many firms commenting on
growing wage pressures. We're seeing inflation stay much
stickier in the service sector, with firms here not hesitating
to raise their prices more aggressively," added Hayes.
(Reporting by Sudip Kar-Gupta; Editing by Toby Chopra)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.