French business grew at a steady pace in December despite a nationwide strike against pension reform, although activity in the manufacturing sector came unexpectedly close to stagnating, a survey showed on Monday.

Data compiler IHS Markit said that its preliminary monthly purchasing managers index fell marginally to 52.0 from 52.1 in November, in line with economists’ expectations in a Reuters poll.

Though a three-month low, the result was comfortably above the 50-point level demarcating expansions in activity from contractions.

Business confidence remained buoyant even though firms are having to contend with major strike that started on Dec. 5 which has seen public transport severely disrupted.

Unions are trying to make President Emmanuel Macron abandon plans to overhaul the pension system with a points-based scheme.

While overall business confidence was nearly stable, it was because stronger services activity helped offset slower manufacturing growth.

“The latest PMI data pointed to further activity growth in the French private sector, but revealed disappointing results for the manufacturing sector,” IHS Markit economist Eliot Kerr said.

“Following some green shoots in October and November, manufacturing production stagnated and new orders returned to contraction territory,” he added.

IHS Markit said that its index for the manufacturing sector eased to 50.3 from 51.7 in November, weaker than the 51.5 economists had forecast on average in a Reuters poll. Meanwhile, the dominant service sector saw its index rise to 52.4 from 52.2 in November, slightly exceeding economists’ expectations for 52.1.

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