French business sentiment weakened for the second straight month in May, survey results from Bank of France showed Friday.
The corresponding index came in at 93, in line with forecast, but down from the prior month's reading of 94. Likewise, confidence in services dipped to 92 from 93.
The bank lowered its economic outlook. Gross domestic product is expected to contract 0.1 percent in the second quarter, revised downward by 0.1 percentage point.
Forecasts are that industrial activity will slightly improve in the short term. Service sector activity is also expected to improve over the coming weeks.
According to the survey, industrial activity declined, largely reflecting weakness in the automotive and metalworking sectors. While order books diminished due to lower demand, inventories are perceived as being slightly above targeted levels.
by RTT Staff Writer
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