French economy to grow 0.1 pct in Q1 -Bank of France

PARIS, March 8 Fri Mar 8, 2013 2:32am EST

Related Topics

PARIS, March 8 (Reuters) - France's economy will grow by a mere 0.1 percent in the first quarter of this year, the central bank said on Friday, maintaining its forecast that the euro zone's second-biggest economy is dodging recession.

The bank's business confidence indicator for industry rose to 96 in February from 95 a month earlier, while the reading for services fell to 88 from 90 in January.

Business managers' forecasts are predicting a stable level of industrial activity in March and a slight fall in the services sector, the Bank of France said in a monthly report.

The French economy contracted by 0.3 percent in the last quarter of 2012, statistics office INSEE said last month. The European Commission expects France to barely grow this year, forecasting a 0.1 percent expansion.

FILED UNDER: