France to see 0.4 percent growth in economy in Q1

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Paris, Feb 8 (IANS) France, Europe’s second biggest economy, should post an economic growth of 0.4 percent in the first three months of 2016, French central bank said on Monday.

The Bank of France said its monthly business climate survey in January showed accelerated industrial business and improved deliveries thanks to dynamic automobile, chemicals, electrical equipment and food processing industries, Xinhua reported.

The capacity utilisation rate was almost stable at 78 percent, it added in its first quarterly growth estimate.

Based on business leaders sentiment, the bank expected industry to slow in short term.

As to services, activities reported significant performance due to sharp increase in temporary work while hotel and catering sector continued to weaken following Paris attacks in November 2015, the bank said.

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Looking to February, business leaders expected “less marked increase in service sector activity,” it added.

For the whole year of 2015, French government target 1.5 percent of growth.

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