French Q2 growth seen at 0.3%

[PARIS] France's economy grew 0.3 per cent in the three months to June from the previous quarter, the central bank estimated on Tuesday in its first forecast for the second quarter.

The Bank of France gave its estimate in its monthly business climate survey in which it said industrial sector confidence remained unchanged at 99 in April. A slight contraction in the agri-food, aeronautics and electronics sectors offset strong growth in the car industry.

Industry executives said they expected activity to accelerate in May.

Meanwhile, service sector morale was also stable at 96 with those polled expecting stronger activity growth in May, the Bank of France said.

The French economy grew a faster-than-expected 0.5 per cent in the first quarter of the year, according to figures published by the INSEE national statistics agency on April 29.

REUTERS