France's economic growth strengthened in the second quarter, with the Bank of France revising its outlook upward to 0.2% growth. Businesses largely sustained activity despite a record heatwave, with some sectors even benefiting.
The upward revision suggests greater resilience in the French economy than previously anticipated, with businesses adapting effectively to challenging conditions like extreme weather and easing supply chain pressures, despite ongoing geopolitical concerns.
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.
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