French economic growth is expected to quicken to 0.4 percent in the third quarter, the Bank of France said in a second reading on Monday, as a business survey by the central bank showed a pick-up in business sentiment in the manufacturing sector in August.
Official data shows the euro zone's second-largest economy grew 0.2 percent in the second quarter with growth for 2018 now seen at a slower-than-expected 1.7 percent. That has put pressure on government plans to rein in the budget deficit.
"Growth is solid. We can do a lot better so we need to step things up," Finance Minister Bruno Le Maire told France Inter radio.
Le Maire reiterated that the deficit would be about 2.6 percent of national income this year and below the European Union's cap of 3 percent next year. President Emmanuel Macron has sold his pro-business reforms on promises that they will boost growth and jobs, but voters are growing increasingly impatient as unemployment stays stubbornly high and economic growth appears less robust than hoped.
Industrial production bounced in August, with auto manufacturers registering significant but one-off flows, helping push the business sentiment indicator higher to 103 points, up two points from July, the Bank of France's survey showed.
But the central bank indicated manufacturing growth in September would be tepid.
"Business leaders expect only moderate growth in industrial activity in September," the survey said. The sentiment reading for the services sector was unchanged at 102 points, according to the survey.
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