(fxcue news) - The euro area private sector fell back into the negative territory in November as services activity shrank for the first time in ten months, joining manufacturing in contraction zone, survey results from S&P Global revealed Friday. The composite output index registered 48.1 in November, which was the lowest since January, and down from 50.0 in October. For the first time since January, both services and manufacturing reported decrease in output. Sharper decreases in new business were reported across manufacturing and services. New business from abroad also declined to the largest extent since the end of 2023. Business confidence slid sharply to the lowest since September 2023. The overall loss of confidence was centered on the service sector. Companies reduced employment for the fourth straight month in November. Further, there remained evidence of spare capacity in the private sector as backlogs of works decreased again. On the price front, the survey showed that input cost inflation rose to a three-month high. Output prices grew at a pace that was faster than in October. Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said, "Things could hardly have turned out much worse." "The eurozone's manufacturing sector is sinking deeper into recession, and now the services sector is starting to struggle after two months of marginal growth," added de la Rubia. "It is no surprise really, given the political mess in the biggest eurozone economies lately - France's government is on shaky ground, and Germany's heading for early elections," the economist said. Germany and France each showed output decrease to larger extents than in October, with France posting the fastest fall in activity since January. Germany's private sector continued to contract in November as sustained weakness in manufacturing output was compounded by the first fall in services activity for nine months. The HCOB flash composite output index dropped to 47.3 from 48.6 in the previous month. The score signaled acceleration in the rate of decline in activity to the quickest since February. Services business activity fell into contraction for the first time in nine months in November. The services PMI registered 49.4, down from 51.6 in the previous month. The expected score was 51.8. Meanwhile, the manufacturing PMI advanced to a four-month high of 43.2 from 43.0 in the previous month. The reading was slightly above forecast of 43.1. France's private sector contracted the most since January as prolonged weakness in demand damped expectations. The flash HCOB composite output index fell markedly to 44.8 in November from 48.1 in October. This was the third monthly fall in private sector output and the score signaled the steepest contraction since January. The services PMI dropped more-than-expected to 45.7 from 49.2 in the previous month. The score was seen at 49.0. The factory PMI posted 43.2, down from 44.5 in October. The indicator was expected to edge up to 44.6.