French economic growth is set to pick up in the second quarter of this year, the Bank of France said today.
The central bank said its April business survey pointed to growth in the euro zone's second biggest economy rising to 0.5 per cent in the second quarter from an assumed 0.4 per cent in the first three months of the year.
"Business prospects over the coming months remain fairly promising," the bank, which sounds out some 12,000 companies each month, said in a statement.
For April, the bank said its business sentiment index rose to 99 from 98 in March. However, the survey showed staff levels in the industrial sector contracted slightly.
The overall upbeat tone to the survey chimed with a positive report on Friday in which national statistics office INSEE scaled up its estimate for French industry investment this year, forecasting a rise of 3 per cent.
The latest indicators followed a series of negative reports on the economy, including a rise in unemployment in March to a five-year high of 10.2 per cent.
The conservative government is worried that voters could use a May 29th referendum on the European Union constitution to vent their frustration at its economic policies.
The latest opinion poll by the Ifop research group showed the charter's opponents are again ahead of its backers, by a margin of 54 per cent to 46 per cent.