Market Flux Event
Bank of France Holds Q3 Growth Forecast at 0.1% as Business Uncertainty Hits Six-Month High
Read this in the Market Flux appThe Bank of France left its third-quarter growth forecast unchanged at 0.1%, confirming a near-stall in economic activity after the economy flatlined in the second quarter. Governor Moulin acknowledged the economy is holding up in the face of an energy shock, but the central bank's industry uncertainty gauge rose to its highest level since April, signaling growing stress among businesses.
Rising energy costs, weak manufacturing, and sluggish construction are the primary drags on growth. Companies are delaying investments and households are pulling back on spending, compounding the pressure. Automotive production faces an additional near-term risk, with output potentially falling sharply in October due to supply shortages.
Official third-quarter GDP figures from the French statistical office are due on October 30, which will provide a fuller picture of where the economy stands heading into the final quarter of the year.
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Sources
- DeItaone🇫🇷FITCH WARNS FRANCE FACES POTENTIAL CREDIT RATING DOWNGRADE Fitch Ratings warns that France's A+ credit rating is under pressure from rising government debt, weak economic growth and political instability. France's proposed 2027 budget targets a deficit of 5% of GDP, but Fitch questions the government's ability to stabilize public finances. Key risks: 🔸Rising debt and borrowing costs 🔸Weak economic growth 🔸Political fragmentation complicating spending cuts Fitch warns that failure to reduce debt could trigger a negative outlook, while a substantial further increase could lead to a credit rating downgrade. France's current outlook remains stable.
- FinancialjuiceFrench third-quarter growth seen at 0.1%, unchanged from previous estimate - French Central Bank.
- FirstSquawkFRANCE Q3 GROWTH SEEN AT 0.1%, UNCHANGED FROM PREVIOUS ESTIMATE — CENTRAL BANK
- LiveSquawkBank Of France: Q3 Growth Forecast Unchanged At 0.1% - Industry Uncertainty Gauge Highest Since April
- InvestingFrench economy posts minimal growth in third quarter
- ReutersBizFrench third-quarter growth seen at 0.1%, central bank says
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