France's manufacturing sector contracts slightly more than expected in July, PMI shows

PARIS (Reuters) - France's manufacturing sector contracted slightly more than initially estimated in July, declining at its fastest rate in six months as business was hit by weaker new orders, a survey showed on Thursday.

The HCOB France final purchasing managers index (PMI) for the manufacturing sector, compiled by S&P Global, slid to 44.0 points in July from 45.4 in June. That final July figure compares to a initial flash reading of 44.1 points.

Any figure below 50 points denotes a contraction in activity, while above 50 points shows an expansion.

"French manufacturing isn't recovering soon (...) with demand dropping significantly both domestically and abroad (...) Overall, the situation doesn't look too good for the French manufacturing sector," said Norman Liebke, economist at Hamburg Commercial Bank AG.

"French manufacturers are feeling less optimistic about the future (...) French manufacturers cited fewer orders from the construction sector and lower client numbers as reasons for pessimism. As a result, the employment situation deteriorated with manufacturers bracing for tougher times ahead."

France's economy grew marginally faster than expected in the second quarter as the delivery of a cruise ship boosted exports, offsetting flat consumer spending, official data showed on Tuesday.

(Reporting by Benoit Van Overstraeten; Editing by Toby Chopra)