French private sector activity declined at a slower pace in June, preliminary results of a survey by Markit Economics showed Thursday.

The composite output index, that measures performance of both manufacturing and service sectors, rose to 46.8 in June from 44.6 in May. The index is now at its highest reading in ten months.

However, the score which was below the no-change mark of 50 suggested contraction of the sector.

The purchasing managers' index, that reflects the health of the French manufacturing sector, rose to a 16-month high of 48.3 in June from 46.4 in May. The factory output index rose to 48.1 from 45.2 in May. This was also the highest score in 16 months.

The services activity index climbed to a ten-month high of 46.5 from 44.3 in May.

The rate of contraction in new business at French private sector companies moderated further during June. Employment declined at a solid pace similar to May's, the report said.