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Demand in France's services sector remained weak in December and output contracted for the seventh month in a row, a survey showed on Thursday, confirming fears the euro zone's second-biggest economy is mired in recession.
The HCOB France final purchasing managers index (PMI) for the services sector, compiled by S&P Global, stood at 45.7 points in December, better than a 44.3-point flash estimate but only just up from the 45.4 points recorded the month before.
It was the best reading in four months but still well below the 50 level that marks growth.
"The French economy finds itself stuck in a recession", said Hamburg Commercial Bank economist Norman Liebke, adding: "It looks like a recovery of economic growth will not happen all too soon."
Fragile demand conditions remained one of the main factors for the continued downturn, the survey of sector executives showed.
Weak demand led to another month of strong backlog depletion as companies recorded a big drop in the volume of business outstanding - among the fastest in more than three years, S&P said.
A composite final PMI, combining data from the services and manufacturing sectors, edged up to 44.8 points from November's 44.6.
France's central bank in December said the economy was on course to expand by 0.8% in 2023, trimming its previous estimate after weak third-quarter data. (Reporting by Tassilo Hummel; Editing by Hugh Lawson)





















