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French industrial production rises sharply in August

Industrial production in France increased sharply in August as the automobile sector and related products experienced significant one-off selling flows and service sector activity remained strong, according to the Banque de France's latest survey on manufacturing, market services and construction.

The central bank's business sentiment indicator for manufacturing increased to 103 in August from 101 in July and the indicator for services remained unchanged at 102 in August. The bank said industrial activity growth is expected to moderate in September and service sector activity growth should remain stable.

The business sentiment indicator for construction fell to 103 in August from 104 in July as activity in the sector slowed during the month. Business leaders expect construction sector activity to grow at the same pace as in August.

The central bank continues to expect GDP growth of 0.4% in the third quarter.