Bank of France: French economy to grow 0.2% in 2nd-Quarter

French economic growth will slow slightly in the second quarter after a strong start to the year, the Bank of France said Wednesday.

    According to the central bank's monthly survey of business activity in May, gross domestic product will rise 0.2% in the three months to the end of June compared with the previous quarter, having risen 0.5% in the first quarter.

    Last month, the Bank of France had said it expected gross domestic product to rise by 0.3% in the second quarter. Still, the forecast indicates the eurozone's second-largest economy is on a steady recovery path. 

    Stronger-than-expected growth in the first quarter and a sharp drop in the number of job seekers in March led French President Francois Hollande to say things are getting better after four years of sluggish growth and rising unemployment. The government expects 1.5% GDP growth this year.

    The monthly sentiment indicator for industry was 97 in May compared with 99 in April. In services, however, the indicator rose to 98 from 96 in April. In construction, business sentiment was stable at 97 in May, the Bank of France said.