French economic growth will slow slightly in the second quarter after a strong start to the year, the Bank of France announced Tuesday.
According to the central bank’s monthly survey of business activity in April, gross domestic product will rise 0.3% in the three months to end June compared with the previous quarter, having risen 0.5% in the first quarter.
In May, business leaders expect industrial activity to accelerate and stronger growth in services, the central bank said.
The forecast indicates the eurozone’s second largest economy is on a steady recovery path.
Stronger than expected growth in the first quarter and a sharp drop in the number of jobseekers in March led French President François Hollande to say recently things are getting better after four years of sluggish growth and rising unemployment. The government expects 1.5% GDP growth this year.
Still, the Bank of France’s monthly survey showed confidence levels were little improved in April from March.
The monthly sentiment indicator in industry remained at 99 in April, just below the long term average of 100. In services, the indicator was also stable at 96. In construction, business sentiment rose slightly to 97 in April from 96 in March, the Bank of France said.
Source: MarketWatch
