Posted By Global Banking and Finance Review
Posted on May 13, 2025
PARIS (Reuters) -France's economy will grow only "slightly" in the second quarter although the outlook is clouded by a string of public holidays in May and by international trade tensions, the central bank said on Tuesday.
Business activity will be buoyed by a moderate pickup in the services and industrial sectors while the construction and energy sectors are losing momentum, the Bank of France said in its monthly outlook, based on a survey of 8,500 firms.
"On the basis of the survey results, supplemented by other indicators, we estimate that activity will increase slightly in the second quarter of 2025, following a rise of 0.1% in the first quarter," the central bank said.
Executives surveyed reported a rise in the level of general uncertainty, especially in the more export-oriented manufacturing sector.
They cited in particular the threat of U.S. tariff increases even though most firms did not for now consider they were directly at risk, apart from the wine industry.
Manufacturers said they were keeping prices steady while service firms reported only a slight increase, the central bank said.
Firms broadly expected this month's string of public holidays to weigh on activity.
(Reporting by Leigh ThomasEditing by Gareth Jones)