PARIS--The French economy returned to only slight growth in the third quarter of this year and business sentiment remains weak, a survey by the Bank of France indicated Wednesday.
The monthly survey by the central bank forecasts that the eurozone's second largest economy expanded 0.2% in the third quarter from the second. The forecast is unchanged from last month's survey.
France's economy had been stuck in stagnation, with zero growth in the first two quarters of the year. Unemployment has continued to rise and the government's plans to reduce the budget deficit have gone awry as tax receipts have come in lower than hoped.
In the depressed economic climate, consumer spending has wavered in France and businesses have cut back on investment.
The survey by the Bank of France showed business leaders still lack the confidence that could spur a recovery.
Business sentiment in manufacturing fell further below the long-term average of 100 to 96 in September from 97 in August, the Bank of France said. In services, the indicator was stable at 93 and in construction it fell to 91 from 92.
