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Eurozone recovery losing steam as France struggles

French business activity contracted further in June, stoking fears that Europe's attempts to kickstart lasting economic growth is losing momentum. 

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Growth in business activity in the euro zone slowed unexpectedly in June for the second month running, easing to its weakest level since December, reports CNBC.

Financial data provider Markit said its June PMI composite index for the euro zone came in at 52.8, against forecasts of 53.5 in a Reuters poll.

"The June PMI rounded off the strongest quarter for three years, but a concern is that a second consecutive monthly fall in the index signals that the euro zone recovery is losing momentum," Chris Williamson, chief economist at Markit said.

French business activity contracted further in June while Germany's private sector continued to expand, further highlighting the divergence between the euro zone's two largest economies.

In France, both the services and manufacturing sectors registered a slowdown amid weaker orders. Output and new orders in Germany remained strong.

Read more of this report from CNBC.