09.03.202009:08:00UTC+00Bank Of France Lowers Q1 Growth Outlook

France is likely to expand at a slower than previously projected rate in the first quarter, according to a monthly survey from Bank of France, released Monday.

Gross domestic product is forecast to grow 0.1 percent in the first quarter, revised down by 0.2 percentage points. The economy had contracted 0.1 percent in the fourth quarter.

The manufacturing confidence index remained unchanged at 96 in February. Industrial production recovered in February driven by automobile and aeronautical sectors.

Foreign orders declined in February. Against the backdrop of concerns related to the coronavirus, business leaders expect industrial production to decline in March.

In services, the business confidence index fell to 96 from 98 in January. Service providers reported continued increase in most services, but at slower rates. Moreover, business leaders forecast activity to contract in March.

The confidence index in construction dropped to 104 in February from 105 in January. Construction sector activity remained strong but activity is expected to decelerate in March.