Key facts
- France's economic growth strengthened in the second quarter.
- The Bank of France revised its Q2 growth forecast upward to 0.2%.
- Businesses largely sustained activity despite a record heatwave in late June.
- The services sector, including hospitality, saw stronger performance.
- Manufacturing orders were at normal levels, and uncertainty eased.
The Bank of France reported that French economic growth strengthened in the second quarter, revising its forecast upward to 0.2%. This improvement was driven by increased activity across industry, services, and construction in June, with businesses adapting to a record heatwave by altering working hours. While some construction projects were slowed, overall disruptions were minimal, and certain service sectors, such as hospitality, benefited from the extreme temperatures. The central bank's survey of 8,500 firms indicated strengthened activity in June, with manufacturing orders around normal levels and a decrease in uncertainty. Companies noted international tensions and input costs as concerns, though supply chain and raw material pressures have eased. Business leaders anticipate continued, albeit more moderate, growth in July.