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Leadership
French central bank expects economy to grow 0.5pc in Q1 2010
08.02.2010
The French central bank has said it expects the country’s economy to grow by 0.5pc during the first three months of 2010.
This represents a more optimistic view than that outlined by the country’s national statistics office INSEE last week when it forecast growth of between 0.3pc and 0.4pc in the first quarter of this year.
The Bank of France also forecast a 0.5pc growth in the French economy during the final quarter of 2009.
The growth forecasts were contained in the bank’s latest monthly business survey published today, which pointed to industrial activity rebounding across the board in January, but particularly in the intermediate goods and automobile sectors.
In terms of forecasts for the industrial sector, the Bank of France said it expected a slight rise in activity overall.
The bank also said that activity in the services sector continued to grow during January, with the outlook for activity set to improve slightly in the coming months.
The bank’s business sentiment indicator for industry rose to 104 in January, up from 102 in December.
The services business sentiment index also rose to 89 in January, up from 88 in December, which is its highest level since October 2008.
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