French Q2 GDP to grow 0.2%; business confidence falls unexpectedly
2014-06-10 10:49:46
The French economy is set to expand marginally in the second quarter and business sentiment declined in May, the statistical office Insee said in a report on Tuesday.
After staying flat in the first quarter, the economy is forecast to grow 0.2 percent in the second quarter, unchanged from the prior estimate.
Business confidence fell unexpectedly to 97 in May, when it was forecast to remain unchanged at 98. However, business leaders expect industrial output to strengthen in June.
According to business leaders, industrial output was stable in May as the decline in the transport equipment, machine manufacturing and metalworking sectors was offset by a rise in the pharmaceuticals and chemical sectors.
The volume of orders was also unchanged in May. Staff levels dropped slightly, while cash positions continued to improve.
Confidence among service providers slid to 93 in May from 94 in April. In the services sector, activity contracted slightly due to the decline in the hotel and catering, transport and temporary work sectors.
Prices continued to inch down. Staff levels were stable, and cash positions remained fairly comfortable. Business leaders expect services activity to rebound in June.