French central bank revises down Q1 growth rate to 0.3 pct

The French Central Bank said Monday it had lowered the growth rate forecast for the first quarter by one percentage point to 0.3 percent.

In its second quarterly estimate, Banque de France (BdF) noted a slight rise in industrial activity in February on the back of a vibrant automobile industry.

The capacity utilization rate lost 0.3 percent to 76.5 percent, while orders were satisfactory, the bank's report said.

Based on business leaders' appreciation, the BdF expected "a more marked increase in industrial activity in March."

Last month, services activity "rose significantly, driven in particular by the temporary work, consulting and publishing sectors." In the short run, the sector should bolster its performance, the bank said.

Meanwhile, the business sentiment indicator in industry fell to 96 in February from 98 in January, while services gained one point to rise to 92.

France wants to accelerate growth to 1 percent this year compared to 0.4 percent reported in 2014. Enditem