Bank of France forecasts GDP to grow 0.3%

Madrid

THE French economy is set to return to growth this quarter, the nation's central bank said, as President Francois Hollande aims to cement a turnaround ahead of next year's general election. Gross domestic product will rise 0.3 per cent in the three months through September, the Bank of France said on Monday. That's more optimistic than economists in a Bloomberg survey, who predict an increase of 0.2 per cent. The latest forecast comes after the economy - the eurozone's second-largest - stagnated in the second quarter.

A gauge of sentiment among French manufacturing executives rose to 98 in July, up from 97 in June, the Bank of France also said on Monday. Confidence in the services sector slipped, while sentiment in construction was unchanged from June.