French Economy Resilient but Iran Crisis Weighs, Central Bank Says
France's central bank said the economy remains resilient but the Iran crisis is weighing on growth via investment and energy costs, in its monthly report covered by Investing.com. The bank trimmed its second-quarter growth estimate slightly. Industrial indicators are sending mixed signals.
France's central bank said the country's economy remains resilient despite rising energy costs linked to the Iran crisis, according to its monthly report covered by Investing.com. The institution noted, however, that delayed investment decisions are constraining second-quarter growth.
The report described the services sector as relatively strong, supported by tourism and corporate services. Industrial output, by contrast, is sending mixed signals as volatility in oil prices and lingering supply-chain uncertainty have weighed on chemicals and metals.
The bank trimmed its second-quarter GDP forecast slightly and stressed the importance of euro-area monetary policy decisions in the period ahead. The French government has signalled that it is preparing a fresh investment-support package and will continue to monitor financial conditions closely in the coming weeks.
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