France’s economy is set to grow by 0.3% in the third quarter, with business leaders expecting activity to pick up further in September despite concerns over energy deliveries and inflation, the Bank of France said.
The central bank’s monthly poll of 8,500 firms showed the supply difficulties that have held back growth and driven inflation eased further in August, reaching their lowest level in a year. The proportion of businesses raising prices also fell last month.
“In a very difficult and uncertain economic environment, overall activity continues to resist,” the Bank of France said Thursday. French Uncertainty Indicator
How much longer the economy can expand is increasingly tricky to predict. While national statistics agency Insee also expects an expansion this quarter, its latest forecasts point to stagnation in the following three months.
The Bank of France said its indicator of uncertainty -- based on an analysis of business leaders’ comments -- rebounded in all sectors. Respondents cited concerns over the availability and price of energy, and how households will react to inflation.
