PARIS, Sept 10 (Askume) – France’s central bank said in its monthly business survey on Tuesday that hosting the Olympics boosted the country’s services sector in August, but the country’s political crisis still clouded the economic outlook.
The Bank of France said the euro zone’s second-largest economy is expected to grow by 0.1-0.2% in the third quarter but kept its forecast unchanged.
A quarter of this growth is expected to be driven by the Olympics, which will lead to increased activity in hospitality, event management and security, particularly in the Paris region.
However, the central bank said the survey did not fully reflect the full impact, including from ticket sales, broadcast revenue and staff bonuses.
France’s National Statistics Institute forecast on Monday that the economy would grow 0.4% in the third quarter but shrink 0.1% in the fourth quarter as Olympic euphoria fades.
The central bank’s monthly survey of 8,500 companies found activity outside services remains challenged, with manufacturing struggling as demand for electric vehicles slows and transport equipment makers face tightening supply chains.
Meanwhile, the construction industry remains weak and officials worry that the ongoing political crisis could impact decisions on new investments and public contracts.
Recruitment difficulties also increased slightly, with 36% of businesses reporting difficulties in August, compared to 33% in July, although this increase occurred mainly in sectors affected by the Olympics.
