Growth forecast confirmed at 0.3% in Q2 (BoF)

The growth of the French economy is expected to reach 0.3% in the second quarter confirms the Bank of France in its third and final estimate based on its June monthly business survey, released Friday. This forecast, which marks a very slight acceleration compared to the growth of 0.2% of the gross domestic product (GDP) in the first quarter, coincides with that of INSEE, which expects GDP growth of 0.3% in the period, in its last note of conjuncture published mid-June. The institute will release its first estimate of second quarter growth on July 27. The Banque de France's June survey shows a one-point rise in the industry's business sentiment indicator to 101. In May, it reached its lowest level since October 2016. The business climate indicator in the services sector rose by one point to 103. Its May level, initially announced at 101, was revised up one point to 102. The one in the construction sector remains In the industry, the business leaders surveyed point to a sharp rebound in production in June, particularly in the equipment products, automotive and metallurgy, while sectors such as agribusiness, chemistry and pharmacy remained dynamic. They expect continued production growth in this month. According to their testimonies, in June, deliveries and order books were well oriented and the number of employees increased slightly. The utilization rate of production capacity increased by one point to 80.1% in June against 79.1% in May. With regard to services, activity accelerated significantly in June and business leaders surveyed by the Banque de France expect strong growth in July. In the building, the activity has also revived in June, in the main body as in the second work, with order books still at a record level, says the Bank of France. Like their counterparts in other sectors, they expect activity to increase in July.