French business activity fell for third month

By Paul Hannon
Economic activity in France contracted for a third straight month in January, but at a slower pace than previously, according to surveys of purchasing managers released                                        
Data provider Markit said the preliminary reading of its composite purchasing managers index rose to 48.5 in January from December's 47.3 to reach a three-month high
A reading below 50 shows private sector activity is shrinking                                        
New orders fell for the fourth straight period, an indication that activity is unlikely to pick up strongly over coming months, while French businesses cut jobs                                        
In an indication that already low inflation rates may fall further, businesses cut their prices even though their costs rose                                        
"Contrasting trends in input and output prices were recorded, with the gap between the survey's respective indices widening to the largest in nearly three years, as strong competitive pressures eroded firms' pricing power," said Jack Kennedy, an economist at Markit