RTTNews - Wednesday, data released by the Bank of France showed that the business sentiment index for the country's industrial sector rose for the fourth straight month in June, while the measure for services sector marked a slight increase for the second month. The central bank also revised its economic outlook for the second quarter.
The business sentiment index for industries rose to 84 in June from 81 recorded in May, in line with economists' expectations. The central bank said industrial activity declined further across the board with the exception of the automotive sector. The capacity utilization rate varied little compared with that of May and is still at a very low level. Order books improved but remained below targeted levels. Inventories of final goods continued to be slightly above normal levels.
Moreover, the central bank said citing various forecasts that industrial activity is set to stabilize over the coming months, in particular thanks to the positive outlook for the automotive, consumer goods and agri-food sectors.
In the services sector, activity contracted mainly due to the fact that business services fell more sharply than in the previous month. The business sentiment indicator for the sector stood at 78 in June, up from 77 in May. Demand, staff levels and prices continued to drop in June. The outlook for activity and demand in the short term appears to be improving slightly but remains unfavorable overall, the bank said.
Further, the central bank said its monthly business activity index suggests that France's gross domestic product or GDP is expected to decline by 0.4% in the second quarter, revised up from a 0.5% fall predicted in May's report.
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