French central bank predicts third quarter growth at 0.3%

French central bank, Banque de France (BdF), on Monday estimated quarterly growth rate at 0.3 percent during the third three months of the year, up by 0.1 percentage point from a quarter earlier.

In its first forecast based on business leaders survey, the BdF noted a slight increase in industrial activities in July as a decline of automotive and machinery and equipment manufacturing offset a rise in pharmaceuticals business.

Order books inched up while the capacity utilization lost 0.3 percentage point to 76.9 percent.

As to services, the activity improved thanks to transport, temporary work, consulting and IT positive results. The sector was set to keep momentum in the short term, according to the report.

The business sentiment indicator in industry and services was unchanged at 98 and 96 points respectively.

In its biannual macroeconomic projections issued last month, French central bank forecasted 1.2 percent growth of France's national output this year above the government estimate of 1 percent.

The growth rate of the eurozone's second largest power would stand at 1.8 percent next year and 1.9 percent in 2017, it added.