French business activity contracted again in September due to a weaker than expected service sector, as the euro zone's second-biggest economy struggles to emerge from stagnation.
Markit said its preliminary composite purchasing managers index eased to 49.1 this month from 49.5 in August.
The index covers activity in both the services and manufacturing sectors and makes around two-thirds of the economy
That marked the weakest level of activity in three months and brought the index further below the 50 point line that separates expansions in activity from contractions.
French services activity fell short of expectations, with the PMI for the sector slipping to a three-month low of 49.4 from 50.3 in August, against a consensus forecast for 50.1. The sector had been in growth territory for just two months.
In contrast, the manufacturing sector saw its index decline less than expected, rising to a four-month high of 48.8 from 46.9 in August, beating expectations for a reading of only 47.0.
In the face of weak demand, French firms continued to cut prices as they fought to win new business, which will keep inflation pressures muted.
With the European Central Bank struggling to revive euro zone demand through cheap credit, there were few prospects for any immediate improvement in French growth, Markit chief economist Chris Williamson said.
"The overall picture for France when you put this all together is another quarter of stagnation at best," he stated.
French growth stalled in the first half of the year and Williamson said that government spending was the only thing preventing an outright contraction.
