The services sector in France contracted slower than initially forecast in September yet remained at the fastest rate in close to three years as a decline in new orders and export business impacted the economy.

Compiled by S&P Global, the HCOB France final purchasing managers index (PMI) for the services sector, published on Wednesday, declined to 44.4 points, its lowest since November 2020, down from 46.0 points in August.

This surpassed September’s initial “flash” reading of 43.9 points but fell far short of the 50-mark dividing growth from contraction. The index has remained below the 50 threshold for four consecutive months, Reuters news agency reports.

In addition, September’s final composite PMI reading – which takes into account both the services and manufacturing sectors – was also not as low as initially reported, at 44.1 points. This is a fall from 46.0 in August but a rise from the first estimate of 43.5.

This was the lowest final reading in France since November 2020, during France’s second Covid lockdown.

“The French services sector is in troubled waters. According to the HCOB PMI, business activity continued to fall for the fourth month in a row. For now, there is no sign of a trend reversal,” according to Norman Liebke, economist at Hamburg Commercial Bank.

“In line with activity trends, new business at home and abroad continues to weaken (...) We might be in for a bumpy ride with jobs soon. Although hiring is still going strong, sooner or later, there will most likely be a cooling of this hiring spree if the trend of declining activity continues,” he went on to say.