PARIS: The Bank of France lowered the growth forecast for the first quarter and business confidence in the manufacturing sector deteriorated, a survey report from the bank showed.
The bank cut the growth forecast for the first quarter to 0.3 percent from 0.4 percent seen earlier. Preliminary data showed that the French economy grew 0.1 percent in the final three months of 2014.
In 2014, the economy expanded 0.4 percent, same as in 2013. The European Commission forecast the French economy to expand 1 percent in 2015 and 1.8 percent next year.
The survey also showed that the business confidence index for the manufacturing sector dropped to 96 in February from 98 in January. The sentiment index for the services sector, meanwhile, rose to 92 from 91.
Morale in the construction sector was unchanged and the relevant index held steady at 90.
Going forward, business leaders expect a significant increase in industrial activity in March, but a decline in construction, especially in structural works, the survey said. Services activity was also expected strengthen this month.
