* Factory PMI slips in October
* New orders grow, factory output slows
* Employment stabilises after 29-month contraction
PARIS, Nov 2 (Reuters) - France's factory upturn moderated in October as output slowed to a 14-month low, but robust new order growth and a stabilisation in jobs suggested the sector's recovery was broadly on track, a survey showed on Tuesday.
The Markit/CDAF final purchasing manager's index (PMI) for the factory sector fell to 55.2 in October from 56.0 in September, in line with an earlier flash estimate.
The output index dipped to its lowest level since August 2009 at 55.2, versus 58.0 in September, as manufacturers liquidated their inventories at the fastest rate in eight months.
But rosier data on unemployment and new orders offset the slowdown in factory output, Markit said.
The index of manufacturing jobs rose to 50.0, marking the stabilisation of headcount levels after 29 consecutive months of contraction, while new orders rose to their highest level since April..
"PMI data signal a further robust expansion of the French manufacturing sector in October," Jack Kennedy, an economist at Markit, said in a statement.
While the manufacturing sector's recovery lost steam in October, a boost in new orders from domestic and foreign buyers hinted the slowdown was only a blip as French firms switch to more efficient production techniques, he said.
"Furthermore, a stabilisation of employment... suggests that firms are becoming more confident in the sustainability of the upturn," Kennedy added.
With trading partners in Europe, Asia and the United States in better shape, a larger portion of new orders came from abroad, Markit said. Export orders accelerated to a four-month high, extending an expansion period to 16 months.
Data published this week showed French consumers regaining confidence in September, as spending on manufactured goods rose 1.5 percent compared to August, fuelled by a jump in car purchases.
Consumer confidence also rose last month, driven partly by a slight improvement in the labour market. Though job creation was sluggish in September, French Economy Minister Christine Lagarde said the recovery picture was intact.
Overall, October's PMI data offered upbeat signals for the French manufacturing sector, with the promise of increased demand and an improving view for jobs. (Reporting by Nick Vinocur; Editing by Toby Chopra)