paris may 23 reuters  french business activity expanded at is slowest pace in four months in may a survey showed on tuesday as manufacturing continued to contract and growth in the dominant services sector decelerated the hcob purchasing managers index pmi flash reading for frances services sector in may compiled by sp global stood at 528 points down from 546 in april and lagging forecasts for a reading of 540 points any figure above 50 points marks an expansion in activity while a reading below 50 signals a contraction the hcob flash pmi for manufacturing showed a decline in activity but fared slightly better than expected rising to 461 in may from 456 in april and outperforming forecasts for a reading of 460 points the flash reading for the may composite pmi  which comprises both the services and manufacturing sectors  fell to 514 points its lowest level since a january reading of 490 and down from 524 points in april it was also below a forecast of 520 points services sector activity increased for the fourth month according to the flash hcob services business activity pmi driving economic growth in france despite this encouraging news there is also some negative news that colours the picture somewhat more bleakly said hamburg commercial bank hcob economist norman liebke firstly total new business fell for the first time in three months and secondly both input and output price inflation rates remain at high levels liebke said he added that the services sector which accounts for 80 of the euro zones secondbiggest economy would be the driving force in the second quarter frances economy grew 02 in the first quarter helped by household consumption and despite a series of strikes against the governments pension reform bill earlier this month the bank of france said the countrys gdp was set to grow slightly in the second quarter when compared to the previous one as activity across sectors was picking up steam