BANK OF FRANCE SEES CONTINUED INDUSTRIAL PICKUP
The Bank of France expects a continued
revival in short-term industrial activity, but the outlook for
any improvement in France's record 10.9 pct unemployment rate
remains bleak, the Bank of France said in its monthly review.
    The upturn in activity in all industrial sectors except the
agro-food sector in February more than compensated for the fall
in January, while construction and civil engineering
experienced a recovery which appears likely to extend over the
next few months.
    Internal demand rose and the export situation improved, in
particular toward the European Community (EC), the Bank said.
    Stocks decreases and order book levels, with the exception
of the agro-food industry, improved substantially.
    In addition, retail prices and salaries stabilised last
months.
    Production rose in all sectors except agricultural
machinery and aeronautics, where it stabilised, and ship
construction, where it declined.
    The car industry was the major beneficiary of the upturn in
activity in February, with both domestic and export orders
rising.
    In the consumer goods sector, actitity rose sharply despite
a fall in the household goods sector and stability in
pharmaceuticals.
    Among semi-finished products, output rose sharply, helped
by a strong growth in construction materials.
    But activity in the retail sector declined slightly over
the past two months.
 REUTER
