PARIS, Nov 23 Reuters French business activity contracted in November, according to a monthly survey, as demand for goods and services in the euro zone39;s secondbiggest economy deteriorated.

The HCOB France flash purchasing managers index PMI for the services sector in November, compiled by SP Global, came in at 45.3 points.

This was marginally better than 45.2 points in October but below the 50 points level indicating a contraction in activity. It was also below a Reuters poll forecast for a November flash services PMI of 45.6 points.

The flash manufacturing PMI for November fell to 42.6 points from 42.8 in October, and also came in below a Reuters poll forecast for a figure of 43.1 points.

The flash November composite PMI which comprises both the services and manufacturing sectors slipped to 44.5 points from 44.6 in October, and came below a forecast for a figure of 45.0 points.

The French economy is kind of in a deadend. Output has declined for the sixth month in a row, especially precipitated by lower demand overall and from abroad. Both sectors39; activity levels manufacturing and services declined significantly in November, said Hamburg Commercial Bank economist Norman Liebke.

The inflation threat remains at large. The latest PMI data indicate that prices are still rising sharply, suggesting that official inflation statistics could remain at higherthananticipated levels for longer than previously thought, he added.

Reporting by Sudip KarGupta; Editing…