Wednesday, November 09, 2011

L'économie française est attendue pour se rafraîchir avant la fin de l'année

The French economy is expected to cool off before the end of the year.

Reuters reports the projection from the French government is another sign that the economic miseries affecting many European nations is being felt throughout the continent. 
Slowing growth has forced the government to announce a new round of tax hikes and budget cuts worth 65 billion euros over five years so that its deficit-reduction targets remain within reach.
The Bank of France said the sentiment indicator for industrial activity had fallen in October to 96 from 97 in September while its index for the services sector fell to 95 from 96 the previous month.
The Bank of France said business managers in the industrial sector had reported that activity was stable but order books were down. But service providers reported slower activity.
The Bank of France's estimate for the third quarter, for which official data is due next Tuesday, is for 0.1 percent.
The Wall Street Journal provides additional details in this story.
French economic growth had already ground to a halt in the second quarter of this year and, while a slight rebound is expected in the third quarter, the fallout from the euro-zone's debt crisis and concerns over global growth are putting pressure on the currency bloc's second largest economy.
The uncertainty about the French economy provides ammunition for the government's recent austerity plans, and it also puts pressure on Greece and Italy to get their economies straightened out so that no other nation grapples with potential default.

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