PARIS: France’s central bank, Banque de France (BdF), on Tuesday held the growth estimate of 0.3 percent unchanged for the last quarter of 2015.
In its final quarterly forecast, the French bank said industrial business “reported an increase in output”, mainly in agri-food and automobile and related goods sectors.
As a result, the capacity utilisation rate improved to 78.2 percent while deliveries recorded positive trend over the period.
Based on the sentiments of business leaders, the bank expected further growth in industrial activities in January.
The service sector reported tepid performance. Temporary work sector and information and communication improved over the period while accommodation and restaurants business lost momentum following the terror attacks which rocked the French capital on Nov. 13 and killed 130 people.
In the short term, business leaders expected a rise in services sector.
Based on a favorable global climate mainly in oil and a weak euro, in addition to expansionary monetary policy in the euro area, the Banque de France estimated a 1.2-percent rise in French national output, for the whole year of 2015 above a government estimate of 1.1 percent.
The bank predicted the growth of the eurozone’s main powerhouse would stand at 1.8 percent in 2016 and 1.9 percent in 2017.
