Bank of France trims Q2 growth forecast to 0.4 pc

In its monthly report on the economic climate, the central bank said forecasts pointed to a slight drop in industrial and services activity in the euro zone's second largest economy.

The bank's business sentiment indicator for industry dipped to 103 in May from 106 in April. For services, the indicator declined to 100 in May from 102 the previous month.

The bank said all industrial sectors grew in May with the exception of food products. Likewise, service activity continued to grow, with prices and staff levels rising.

The capacity utilisation rate in industry moved closer to its long-term average, while order books moved toward the high levels seen at the start of the year, although new orders tended to slacken.

Inventories remained at normal levels while price rises slowed from previous months.

Copyright Reuters, 2011