The Bank of France said today its December business survey pointed to economic growth of 0.5 per cent in the fourth quarter of 2005.
That was a downward revision from the 0.6 per cent growth figure seen in its November survey. The central bank, which sounds out some 12,000 firms each month, said its December business climate index fell to 101 from 106 in November.
"According to the business managers surveyed . . . industrial activity firmed in December," the bank said, adding: "The capacity utilisation rate nonetheless edged down.
"Forecasts for activity over the coming months are favourable," the bank said.
The survey pointed to average annual growth of 1.6 per cent in 2005, unchanged from the previous report.
The French government has forecast growth of between 1.5 and 2.0 per cent for 2005, rising to 2.0-2.5 per cent this year. The conservative administration is trying to boost growth and hiring but has limited room for manoeuvre as it is also trying to cut the country's debt.
There was little change in staff levels in the industrial sector in December, the Bank of France said.