Bank of France revises growth outlook down

14th March 2005, Comments 0 comments

PARIS, March 14 (AFP) - The Bank of France revised its forecast for growth of the French economy down by 0.1 percentage points to 0.4 percent on Monday.

PARIS, March 14 (AFP) - The Bank of France revised its forecast for growth of the French economy down by 0.1 percentage points to 0.4 percent on Monday.

It also reported that its index of business confidence had fallen to 101 in February from 105 in January.

If the economy continued functioning at current levels, with no further expansion, growth for the whole of 2005 would be 1.1 percent, the bank said.

Analysts noted that this meant that the economy was unlikely to grow by 2.5 percent this year, as forecast by the government. For this target to be achieved, the economy would have to grow by 1.0 percent in each of the next three quarters.

Business leaders interviewed by the bank under the process of composing the confidence index said that industrial activity had remained flat on an adjusted basis for the second month in a row.

The rate at which industrial capacity was being used fell slightly.

The rate at which new orders were being taken had risen slightly on both internal and external markets, the bank said.

But order books had slimmed down slightly although they remained above normal levels.

Stocks of finished goods had increased slightly.

© AFP

Subject: French News

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