Forecast Revised Upward for 2017
Industrial production increased in May, more than in April… but it might slow down in June, which explains the unchanged estimate of 0.5%. Let us recall that first-quarter growth was 0.3%.
For the months of April, May, and June, the Bank of France notes that activity was dynamic in the services sector, with a rebound in temporary employment. This is good news for future employment figures, as an increase in temporary work generally implies the creation of new jobs.
The construction sector is also benefiting from this recovery, in both major works and minor works. On the other hand, IT activities tend to be slowing down.
While the Bank of France has not revised the growth figure for the second quarter, the institution has raised the forecast of GDP growth for the year.
Growth is expected to reach 1.4% for 2017, which is 0.1 percentage points higher than the previous estimate. For 2018 and 2019, growth could reach 1.6%.
As for the Valls government, it had anticipated a GDP growth of 1.5% for this year. We are not very far off now…
