Across the euro zone, the services sector, which has been near stagnation for several months, grew even more slowly last month, as the downturn in Germany worsened.
The Reuters Euro-zone Business Activity Index, which surveyed more than 2,000 companies, came in at 50.6, slightly below November's 50.8 and the 50.9 consensus forecast by economists but still above the 50 level that divides growth from contraction.
Economists said the data added to uncertainty about where the global economy is headed after a key US manufacturing survey last week showed a buoyant rebound while the equivalent euro-zone survey showed the sector shrinking.
"There is still a lot of uncertainty about...a possible war in Iraq and how the economy is going to come out of this trough," said Mr Elwin de Groot at Fortis Bank in Amsterdam.
The euro-zone services survey, which covers firms in France, Italy, Spain, Germany as well as Ireland, found service sector business growing in most of the region last month.
But in Germany, the euro zone's largest and currently most fragile economy, the headline index fell for the fifth consecutive month, to 45.4 from 45.6.
