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French central bank downgrades Q2 growth forecast

Xinhua, July 8, 2015 Adjust font size:

France's central bank Banque de France (BdF) on Wednesday revised down growth rate forecast during the second quarter of the year to 0.2 percent from an initial estimation of 0.3 percent.

According to the bank's economic monthly report, "industrial production grew less rapidly. Most sectors were flat, except transport equipment" with the capacity utilization rate reported to rise to 77.2 percent.

In short term, business leaders estimated the industrial activities to gain momentum.

In June, services showed a positive performance and set to record further growth this month, the BdF report showed.

In its biannual macroeconomic projections issued last month, French central bank forecasted 1.2 percent growth of France's national output this year above the government estimate of 1 percent.

The growth rate of the eurozone's second largest power would stand at 1.8 percent next year and 1.9 percent in 2017, it added. Endit