French industry starting to slow down

According to a monthly business survey given by the Bank of France, growth in their industrial activity has stalled amid growing uncertainty and rising energy prices. 

The central bank's survey of 8,500 firms showed stabilization tendencies instead of a slight increase in September. Business leaders are forecasting another stagnation in October and are also reporting further deterioration in their monetary position amid rising energy prices.

The French economy represented greater resilience at the start of the decline after strong growth in the second quarter. However the prolonged rise in energy prices is putting a strain on factories and testing the ability of government measures to reduce higher costs. Statistics agency Insee informed last week that it expects economic growth falling to zero in the final quarter of the year.

Villeroy is sticking with the bank's forecast of 2,6 percent growth this year, followed by a "pronounced slowdown" next year. The company reiterated the bank's projected range for 2023 between a contraction of 0,5% and 0,8% growth, citing "a lot of uncertainty".The forecast assumes a stable fourth quarter this year.