France’s private sector showed minimal growth in February, with overall business activity remaining largely steady since the beginning of the year, according to the findings from a monthly survey released on Friday.

The HCOB Flash France Purchasing Managers’ Index (PMI) for the country’s key services sector, compiled by S&P Global, registered 49.6 points in February, reaching a two-month high.

However, the index has remained below the 50-point mark, which separates expansion from contraction, for the second consecutive month.

A Reuters news agency poll had predicted the February flash services PMI at 49.2, while the final reading for January was 48.4.

The flash manufacturing PMI for February dropped to 49.9 points, down from 51.2 in January and below the Reuters forecast of 51.0.

Meanwhile, the flash composite PMI for February, which combines both services and manufacturing, rose to 49.9 points from 49.1 in January, exceeding the forecast of 49.7.

In addition, new business declined for the third straight month, contracting at the fastest pace since last July, with weak exports weighing heavily on overall order books. Employment remained flat following several months of growth, as layoffs in manufacturing offset modest job gains in the services sector.

“The French private sector is still struggling to gain real momentum. Since last November, the HCOB Composite PMI has been hovering around the 50.0-point growth threshold, implying that any real progress remains absent,” according to Jonas Feldhusen, junior economist at Hamburg Commercial Bank.

Price trends differed across sectors, with service firms providing discounts while prices for manufactured goods climbed at the fastest pace in 18 months. Overall selling prices declined for the first time in three months, and input cost inflation slowed to a four-month low.

France’s economy is expected to rebound later this year after weathering the impact of Donald Trump’s tariffs and an extended period of fiscal uncertainty, Bloomberg reports.

A recent survey by the Bank of France projects growth of 0.2% to 0.3% for the current quarter, supported by robust performance in the defence and aerospace industries.