French Central Bank boosts growth forecast for 2QTR'13

France's Central Bank said in a report Monday that Gross Domestic Product (GDP) is estimated to have risen 0.2 percent in the second quarter, an upward revision of 0.1 percent from two earlier forecasts by the bank. The Central Bank said it had revised upward its GDP estimate due to recent surveys on business confidence and activity. The latest report indicated that "industrial production rebounded" in June after a slight dip the previous month. Industrial orders have also firmed due largely to foreign demand and order books in several areas are considered "sufficient", including for transport and automobile goods. More importantly, industry leaders see orders progressing as we move into July. The confidence index for industrial leaders rose to 96 in June from 94 in May and it also rose to 90 from 89 in the services sector over the same period. An index of 100 is considered an average for these statistics. Last week, the usually-reliable National Statistics Office (INSEE) also forecast a resumption of growth in the French economy after three quarters of negative growth (recession) or stagnation. But the growth might not be sufficient to resolve France's serious budget and deficit problems and the government is undertaking serious reforms to taper spending and improve taxation efficiency.