16 July 2001, 09:46 The Bank of France Friday revised down its forecasts for French GDP growth in 2Q and 3Q
PARIS (MktNews) - The Bank of France Friday revised down its
forecasts for French GDP growth in 2Q and 3Q by 0.2 point to +0.3% and
+0.4% based on the results of its monthly industry survey.
Industry output should grow at a "moderate" pace in coming months
after a slowdown in June, the central bank said. Industry orders remain
above long-term averages and inventories declined slightly in June.
Some companies are delaying investments planned for the second half
to see how demand develops in the months ahead.
Industrial activity slowed in June, led by a downturn in the
semi-finished goods sector. Consumer and capital goods output was
stagnant, while the auto industry remained dynamic. Auto output is seen
stabilizing at a high level in coming months.
Foreign and domestic demand weakened in June, especially for
semi-finished goods. The decline in orders from the U.S. and Germany
continued.
Capacity utilization eased in June and was below previous-year
levels, but still slightly above long-term averages. Full-time
employment was stable in all sectors.
Finished goods and raw materials prices remained stable.
Seasonally and calendar-adjusted real retail sales in May-June rose
4.2% from March-April and were 2.5% higher on the year. Retailers expect
sales to remain stable over the next two months.
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