French business activity slowed unexpectedly in December, with the consumer-driven services sector grinding to a halt in the aftermath of the November Paris attacks.

Markit Group’s Purchasing Managers’ Index (PMI) for France weakened to 50.3 in December from 51.0 the previous month. A separate gauge of services activity fell to 50.0 from 51.0, an 11-month low. A PMI reading above 50.0 signifies expansion in the economy.

The December data suggest that the French economy grinded to a near standstill in the aftermath of a terrorist attack on November 13 that claimed the lives of 130 people.

“French private sector output growth nearly ground to a halt at the end of 2015 amid faltering new business intakes. A slowdown in the dominant service sector was the driver, with some panelists indicating that their new business intakes had been impacted following the recent terrorist attacks,” said Markit senior economist Jack Kennedy in a statement

France’s economic recovery has remained choppy this year and has struggled to regain momentum since 2012. The economy expanded 0.7% in the first quarter of 2015 before grinding to a halt in the second quarter. GDP growth picked up to a modest 0.3% in the third quarter. According to Markit, “PMI data for the fourth quarter as a whole suggest that GDP growth is likely to have remained at a similar pace.”

As a result of the attacks, France’s statistical agency recently lowered its fourth quarter GDP forecast to 0.2% from 0.4%. Businesses in Paris have already reported a decline in consumer spending and tourist activity following the attacks. The restaurant and hospitality sectors were among the hardest hit, with hotel occupancy rates falling more than 20% in the days after the attacks. According to the French government, the impact on hotel and accommodation will be far greater than the aftermath of the Charlie Hebdo massacre in January.

Major airlines also experienced several cancellations amid heightened tourist and business traveler concerns. According to ForwardKeys, a research firm specializing in travel-data, demand for Christmas travel to Paris has declined over the past month, with 13% fewer airline tickets booked for the last week of December.

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