France's PMI Composite Output Index, which takes both the services and the manufacturing business activity into account, stood at 47.5 in December, improving from 46.7 recorded in the previous month, S&P Global and Hamburg Commercial Bank (HCOB) revealed in their joint report on Monday.

Additionally, the seasonally adjusted HCOB France Services PMI Business Activity Index, which measures changes in the volume of business activity compared with one month previously, registered in sub-50.0 contraction territory for a fourth successive month in December at 49.3 from November's ten-month low of 46.9.

"Despite weak demand for services in France, input prices are increasing, although inflation remains well below the historical average. Positively, compared to the previous month, cost pressures eased slightly. However, service providers' pricing power is suffering more due to the current demand weakness. This year, service prices have not risen faster than input prices," Economist at Hamburg Commercial Bank Dr Tariq Kamal Chaudhry said.