French Private Sector Contracts Modestly In January

France's private sector activity deteriorated for the third consecutive month in January, though modestly, indicating that the country's economic downturn has remained mild in nature thus far, preliminary results of the purchasing managers survey by S&P Global showed on Tuesday.

The flash composite output index dropped slightly to 49.0 in January from 49.1 in December. Meanwhile, the reading was forecast to rise to 49.5.

Any reading below 50 indicates contraction, while a score above 50 suggests expansion in the sector.

The French private sector continued to remain in contraction at the start of the year, reflecting a further drop in factory goods production and a sustained weakening across the service sector.