France on target to meet official growth target: INSEE

10th November 2010, Comments 0 comments

France is on track to meet or exceed its official 1.5-percent growth target this year, with the statistics body INSEE foreseeing a pick-up in momentum over the second half, analysts said.

The agency, which will publish its official figures on Friday, has said growth should be "modest" in the final six months, coming to 0.4 percent in the third and fourth quarters.

The forecast is consistent with that from analysts and the Bank of France, which on Tuesday forecast gains of 0.3 percent in the third quarter and 0.5 percent in the fourth.

"Our growth projection, based on the robust performances of September and October, is ... for 0.4 percent growth in the third and fourth quarters and 1.5 to 1.8 percent for the year," said Michel Martinez of Societe Generale.

INSEE on Wednesday reported that French industrial output edged up 0.1 percent in September over August, when it was stable.

But manufacturing production, which excludes the mining and construction sectors, fell 0.1 percent after having risen 0.1 percent in August.

Analysts foresee a slowdown in industrial production in the fourth quarter.

In another report, INSEE said consumer prices rose 0.1 percent in October from September, reflecting increases in prices of petrol and services, and were up 1.6 percent on the year.

© 2010 AFP

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