French growth to reach 0.4% in Q1

The Bank of France has given its first estimation of French GDP growth for Q1 2015, saying it would reach + 0.4%, up from the + 0.1% estimate of Q4 2014.

The bank based its estimate on its monthly French-based companies survey, which shows a clear progress of industrial production and deliveries.

“Chemistry, pharmaceutic and transport material industries, including automobile, are particularly dynamic”, commented the Bank of France. Orders are increasing significantly and the use of production capacities’ ratio rose slightly to 76.9%, its best rate since August 2012, the bank also said.

The price of raw materials, as well as the finished products ones, are tensing up and the surveyed companies look for a further increase of production in February.

In the services industry, activity increased slightly. The BoF reported a compensation of the fall of the accommodation industry by the increase of advertising and press sectors. Surveyed companies expect their activities to return to grow in February.

However, the construction industry is facing a small decrease. The order-book levels tend to “deteriorate” as staff and estimate prices are dropping. Surveyed companies foresee a new fall of their activity in February, the bank said.