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Home›French Economy›The French economy on track for growth of 0.75% in the fourth quarter

The French economy on track for growth of 0.75% in the fourth quarter

By Lisa Perez
November 8, 2021
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PARIS, Nov. 8 (Reuters) – France’s economic rebound is expected to moderate in the fourth quarter, with most companies seeing further improvement despite continued supply chain and personnel challenges, the French central bank said on Monday .

The second-largest economy in the euro zone is expected to grow 0.75% in the fourth quarter, the Banque de France announced in its monthly economic outlook, based on its survey of the business climate.

INSEE said last week that the economy grew 3.0% in the third quarter, beating the Banque de France forecast by 2.3% as the economy returned faster than expected to levels of pre-crisis activity.

Companies participating in the business climate survey said they expect business conditions to continue improving this month in the service sector – by far the largest in France – and cool slightly in industry and construction.

The proportion of executives in the industrial sector reporting supply problems stabilized from October at 56%, although the proportion reached 86% in the automotive sector. It fell in the construction sector for the first time in months, falling to 58% from 62% in October.

At the same time, the number of companies reporting difficulties in recruiting workers rose from 54% to 49%, led by the service sector where it rose from 57% to 50%. (Report by Leigh Thomas edited by Peter Graff)


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