France's central bank said on Thursday its latest business survey pointed to 0.6 percent growth in the second and third quarters of this year, 0.1 percentage points higher in both periods than previously seen. The Bank of France, which surveys some 12,000 companies each month, also said its business climate index rose in June to 106 from 105 in May. "Industrial activity clearly increased in June," the central bank said in a statement. "Production should continue to increase in the coming months." The upbeat report chimed with other broadly positive recent signs of recovery from the French economy, the euro zone's second largest after Germany. "On the whole this confirms the fact that France is doing better than Germany," said Maryse Pogodzinski, economist at JP Morgan. "The correction that we expected in the second quarter is much less than initially expected."
The French economy grew 0.8 percent in the first quarter, compared with 0.4 percent in Germany. "French consumers remain quite a strong support for growth," added Pogodzinski. Leading French businesses have been enjoying growth, with carmaker PSA Peugeot Citroen posting higher first-half sales and an upbeat outlook earlier this month. President Jacques Chirac said on Wednesday economic growth was returning in France but less strongly than in the United States and Asia. Boosting growth will be a key priority for France in the next three years, he said, adding that this would help reduce unemployment.///