Cooks bring out the food from the Carlton Hotel Beach Club on the Croisette in Cannes, May 24, 2025. REUTERS/Benoit Tessier

PARIS, Dec 3 (Reuters) - France's dominant services sector expanded slightly more than first estimated in November, hitting a 15-month high as new business gained momentum in the euro zone's second-biggest economy, a survey showed on Wednesday.

The HCOB France final purchasing managers index (PMI) for the services sector, compiled by S&P Global, stood at 51.4 - up from 48.0 in October - marking the first time the figure has topped the 50 threshold separating growth from contraction since August 2024.

November's flash services PMI was at 50.8.

The composite PMI, which includes both manufacturing and services, also entered positive territory, climbing to 50.4 in November from 47.7 in October and versus a flash estimate of 49.9.

However, manufacturing output continued to decline, widening the gap between the two sectors.

"Finally, some positive news. For the first time in over a year, output in France's private sector has increased. However, manufacturing remains a drag on overall performance, posting its steepest fall in nine months," said Jonas Feldhusen, junior economist at Hamburg Commercial Bank.

While the services sector's rebound is encouraging, Feldhusen cautioned that it remains to be seen whether this is the start of a sustained recovery or a temporary uptick.

Business expectations improved but remained cautious, with firms hopeful for a more stable policy environment to boost household consumption and business investment.

And, despite this positive development, the survey highlighted ongoing challenges.

Employment in the services sector fell slightly, reversing a robust hiring trend from the previous three months. Competitive pressures also limited companies' ability to raise prices, with output prices remaining largely unchanged despite rising input costs.

(Reporting by Benoit Van Overstraeten; Editing by Joe Bavier)