French Economy Expected to Grow

PARIS (Reuters) – The French economy is set to return to growth in the first quarter as service sector activity rebounds, according to the central bank’s monthly outlook.

The euro zone’s second-biggest economy is on course to grow 0.1-0.2% in the first quarter from the previous three months, after experiencing a 0.1% contraction in activity, as stated by the Bank of France.

While services are expected to drive first quarter growth, manufacturing is projected to remain flat after a contraction in the previous quarter.

A monthly survey conducted by the central bank among 8,500 firms indicated companies reported increased business uncertainty, stemming from a turbulent domestic political climate and concerns over potential rises in U.S. tariffs.

Furthermore, companies increased their prices less in January than in the first month of the previous three years, and staffing difficulties continued to ease across the private sector, according to the survey findings.