This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-18364456#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
The article has changed 7 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Bank of France cuts growth forecast | Bank of France cuts growth forecast |
| (about 1 hour later) | |
| The Bank of France has cut its forecast for the French economy. | The Bank of France has cut its forecast for the French economy. |
| It now expects the economy to contract by 0.1% between April and June this year, having predicted that there would be zero growth less than a month ago. | It now expects the economy to contract by 0.1% between April and June this year, having predicted that there would be zero growth less than a month ago. |
| There was zero growth in the French economy in the first three months of the year, following growth of just 0.1% in the previous quarter. | There was zero growth in the French economy in the first three months of the year, following growth of just 0.1% in the previous quarter. |
| The cut is the latest sign of the lack of growth in the eurozone, which is struggling with the debt crisis. | The cut is the latest sign of the lack of growth in the eurozone, which is struggling with the debt crisis. |
| Earlier this week, the latest set of official figures confirmed the eurozone economy achieved zero growth in the first three months of 2012. | Earlier this week, the latest set of official figures confirmed the eurozone economy achieved zero growth in the first three months of 2012. |
| Declining activity | Declining activity |
| The cut in the French growth forecast came in the Bank of France's Survey on Industry and Services for May. | The cut in the French growth forecast came in the Bank of France's Survey on Industry and Services for May. |
| It found that: "Industrial activity declined in May, in particular in the automotive and metalworking sectors." | It found that: "Industrial activity declined in May, in particular in the automotive and metalworking sectors." |
| In the services sector: "activity marked an overall decline, especially in the temporary work, transport and hotel-catering sectors". | In the services sector: "activity marked an overall decline, especially in the temporary work, transport and hotel-catering sectors". |
| On Thursday, official figures showed that French unemployment had hit 10% in the first quarter of 2012. | On Thursday, official figures showed that French unemployment had hit 10% in the first quarter of 2012. |
| German growth | |
| But there was better news for Europe's biggest economy: Germany. | |
| Its central bank, the Bundesbank, has increased its forecast for German growth this year from 0.6% to 1%. | |
| But it has cut its 2013 forecast from 1.8% to 1.6%. | |
| Latest figures from Germany showed that its exports had dropped 1.7% in April compared with the previous month. | |
| The decline followed three consecutive months of gains. | The decline followed three consecutive months of gains. |
| But exports grew 3.4% compared with the same month last year, led by a 10.3% increase in exports to countries outside the European Union. | But exports grew 3.4% compared with the same month last year, led by a 10.3% increase in exports to countries outside the European Union. |
| Germany's imports fell 4.8% compared with the previous month. | Germany's imports fell 4.8% compared with the previous month. |
| "The recent escalation of the debt crisis is leaving its mark. Orders are also declining because of weaker global demand," said Juergen Michels from Citigroup. | "The recent escalation of the debt crisis is leaving its mark. Orders are also declining because of weaker global demand," said Juergen Michels from Citigroup. |
| "Exports are likely to fall further in the months ahead because of this, but we won't see a complete collapse." | "Exports are likely to fall further in the months ahead because of this, but we won't see a complete collapse." |
| Italian decline | |
| Italy's industrial production declined by more than expected in April. | |
| Data agency Istat said that production had fallen 1.9% compared with the previous month. | |
| Compared with the same month last year, industrial production was down 9.2%, which was its worst annualised drop since November 2009. |