PARIS Dec 10 France's central bank said on
Monday it expected the euro zone's second largest economy to
shrink by 0.1 percent in the fourth quarter, while in dustrial
output unexpectedly sh rank in October.
The Bank of France's quarter on quarter growth forecast
repeated a prediction it made in October.
The bank also said its industrial climate indicator dipped a
further 1 point to 91 in a November survey, while a similar
measure of sentiment in the services sector held steady at 91.
French gross domestic product grew 0.2 percent in the third
quarter, contrary to predictions that the economy would stagnate
or even shrink, but economists said the outlook was gloomy.
In a separate report, national statistics office INSEE said
industrial output dropped 0.7 percent in October, the first
month of the final quarter, following a 2.7 percent drop in
The October figure was weaker than expected, as economists
polled by Reuters had predicted a 0.3 percent rise.
In a sign of weakness in the euro zone's top economy.
Germany's trade surplus narrowed in October to its lowest level
in over half a year as exports posted meagre growth in the face
of weakening demand from the country's recession-hit European