PARIS (Reuters) – The French economy is expected to register slight growth in the first quarter compared to the previous three months, according to the Banque de France’s monthly business survey published on Wednesday.
The survey, carried out among business leaders, shows that activity increased in January more markedly than they had anticipated last month.
“Despite the succession of external shocks, economic activity continues month after month to show resilience”, declares the Banque de France, echoing the forecasts of INSEE which said on Tuesday that it was counting on growth in gross domestic product ( GDP) by 0.1% in the first quarter, after an increase of 0.2% in the fourth quarter.
For February, companies anticipate a slowdown with a slight increase in services, stability in industry and a decline in construction, specifies the Banque de France.
Supply difficulties are declining quite significantly in industry with only 33% of industrial companies mentioning them as a problem in January, compared to 40% in December. They fell more slightly in building (31% in January after 33% in December).
Business leaders are also reporting an increase in the prices of finished products in the context of the usual price revisions at the start of the year. However, this increase is less marked than at the beginning of last year.
Recruitment difficulties continue to ease for the fourth consecutive month, while still remaining high since 51% of business leaders mention it.
(Report Leigh Thomas, Blandine Hénault for the French version, edited by Bertrand Boucey)
Copyright © 2023 Thomson Reuters