Finance
French central bank sees first quarter growth of 0.2-0.3%
Published by Global Banking & Finance Review®
Posted on February 11, 2026
2 min readLast updated: February 11, 2026
Quick Summary
The French central bank forecasts a 0.2-0.3% growth in Q1, with strong industrial output and improved business sentiment across sectors.
French central bank sees first quarter growth of 0.2-0.3%
France's Economic Growth Outlook
PARIS, Feb 11 (Reuters) - France's growth outlook picked up at the start of the year, with businesses reporting a firmer-than-expected rebound in activity and signalling that momentum should carry into the coming months, the central bank said on Wednesday.
Business Sentiment and Confidence
The euro zone's second-biggest economy is on course to grow 0.2-0.3% this quarter from the previous three months when it expanded 0.2%, the Bank of France estimated.
Sector Performance and Expectations
The central bank gave the forecast in its latest monthly business sentiment survey, which showed companies across industry, services and construction entering February with improved confidence, despite lingering uncertainties linked to global trade tensions.
Challenges and Uncertainties
The Bank of France said industrial output strengthened again in January, extending a months-long run above its long-term trend. The improvement was led by sectors tied to defence and aerospace demand, including electronics and machinery.
Meanwhile, services and construction also advanced, both outpacing what firms had anticipated a month earlier.
Companies expect activity to continue rising in February, with industry set to grow at a solid pace while services and construction point to more measured gains.
Reported uncertainty eased further in services and construction but remained elevated overall and even edged up slightly in industry, reflecting trade tensions.
Cash-flow conditions were still judged slightly weak in manufacturing but improved in services, though with sharp divergences across segments. Supply chain tensions remained contained overall but worsened in aerospace and electronics, while recruitment difficulties increased, particularly in construction.
(Reporting by Leigh Thomas; Editing by Anil D'Silva)
Key Takeaways
- •French economy expected to grow 0.2-0.3% in Q1.
- •Business confidence has improved across sectors.
- •Industrial output continues to strengthen.
- •Services and construction show measured gains.
- •Trade tensions and recruitment issues persist.
Frequently Asked Questions about French central bank sees first quarter growth of 0.2-0.3%
1What is GDP?
Gross Domestic Product (GDP) measures the total economic output of a country, representing the value of all finished goods and services produced within its borders in a specific time period.
2What is economic growth?
Economic growth refers to the increase in the production of goods and services in an economy over a period, typically measured as the percentage increase in real GDP.
3What are supply chain tensions?
Supply chain tensions occur when disruptions affect the flow of goods and services, often due to factors like trade disputes, natural disasters, or logistical challenges.
