France's Economy Steadies Amid Political Shakeups
France's economy is set for steady growth at 0.3% in Q3, despite political changes and trade tensions, driven by a strong service sector. The central bank's survey noted challenges in manufacturing and construction, while recruitment eased and selling prices remained stable. International trade issues, particularly U.S. tariffs, also impacted sectors.
In the midst of political upheaval, France's economy is expected to maintain a steady growth rate in the third quarter, driven by a robust service sector, according to the central bank's latest forecast.
The euro zone's second-largest economy is projected to grow by 0.3% from the previous quarter, consistent with previous estimates. The Bank of France's monthly economic outlook, based on a survey of approximately 8,500 businesses, noted continued advancement in service sector activity and moderate growth in manufacturing, contrasting with a decline in construction.
The survey was conducted before Prime Minister Sébastien Lecornu's resignation, prompting President Emmanuel Macron to search for a new premier. Business sentiment highlighted concerns over the national political environment and trade tensions, particularly the effects of increased U.S. tariffs on the agri-food and machinery sectors.
(With inputs from agencies.)
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