France’s central bank, Banque de France (BdF), on Monday cut the country’s estimated growth for the second quarter by one percentage point to 0.2 per cent, citing declining industrial activities.
The bank said in its quarterly forecast that industrial production declined significantly in June, in particular in the automobile, rubber and plastic as well as IT and electronic equipment sectors.
Meanwhile, the bank expected industry output to recover in July in all sectors based on business leaders’ sentiment.
It also noted a moderate rise in the services sector in June and that a growing trend was expected in the short term.
In June, the business sentiment indicator in industry lost four points to 95, while that of services stood at 100, unchanged from May data.
The BdF set France’s 2019 growth at 1.5 per cent, below a government target of 1.7 per cent.