French Central Bank Projects 0.3 Percent GDP Growth for Third Quarter in Initial Estimate by Reuters

PARIS (Reuters) – France’s economy is projected to grow by 0.3 percent in the third quarter, marking a return to growth after a period of stagnation in the previous quarter, according to the central bank’s initial estimate released on Monday.

In its monthly business climate survey, the bank noted a slight increase in confidence within the industrial sector, which rose by one point to reach 98 in July. Conversely, confidence in the services sector experienced a decline, dropping one point to 96.

The economy unexpectedly stalled in the second quarter, primarily due to weak consumer spending and investment, posing a challenge to President Francois Hollande’s claims of an improving economy.