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France Growth Forecast: Down 0.2% in Q2

The Bank of France lowered its growth forecast of 0.2% for the second quarter.

The Bank of France on Wednesday revised downward its growth forecast for the French economy in the second quarter, to 0.2% against 0.3% previously anticipated.  The Bank of France is based on a monthly survey of leaders companies that anticipate a slight decline in June of activity in industry and construction.

Industrial production progression

In May, industrial production continued to grow, especially in the equipment sector, while those of automotive and chemistry were slower in growth. The service activities have meanwhile risen sharply, with the exception of those of the accommodation and catering and transport. For June, in contrast to industry sectors and building, business leaders expect an increase in activity.  The construction industry has seen a rebound in both the wholesale and the second artwork. In the first quarter, growth in France stood at 0.6% according to INSEE.

The Bank of France expected a rise in gross domestic product of 0.3%.  For the full year, the institution expects growth of 1.4%, while the government expects GDP growth of 1.5%.

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