The Bank of France expects the economy to maintain its growth momentum in the third quarter.
The French central bank stated that, supported by growth in key industries and easing inflation, the French economy is expected to maintain momentum this quarter. On Tuesday, the French central bank cited a monthly business survey, forecasting a 0.2% GDP growth for the third quarter. This would be on par with the previous quarter and slightly higher than the 0.1% predicted by analysts surveyed by Bloomberg. The French central bank indicated that economic activity will continue to be driven by the service sector, including transportation, information, and communication, while manufacturing showed signs of rebound in August. Looking ahead, the energy sector is expected to expand, but the construction industry may decline further due to reduced public contracts. Meanwhile, the French central bank warned that the economy still faces "significant uncertainty," citing factors such as "geopolitical tensions in the Middle East and weather conditions until the end of summer, when a new heatwave may still occur."
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