The Bank of France on Thursday said the domestic economy will grow slightly less than expected in the third quarter, while industrial output rose very slightly.
French gross domestic product will grow 0.2% in the third quarter from the second three months of the year, the Bank of France said in its survey on industry and services. It had previously forecast a 0.3% rise for the period.
The September business sentiment indicator in industry fell further below the long-term average of 100, reaching 97 after a reading of 98 in August.
“Production of transport equipment, and notably automobiles, declined after several months of growth. Most of the other sectors remained flat or saw modest growth,” the Bank of France said, adding that forecasts suggest that industrial production will improve in the coming week.
The Bank of France’s business sentiment indicator in services rose slightly to 97 from 96. “In the services sector, activity accelerated markedly. Nearly all sectors saw growth over the month–notably the temporary work and consulting sectors,” the Bank of France said.