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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