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Bank of France still sees GDP shrinking 0.1 pct in Q3

PARIS, Oct 8 (Reuters) - The French economy is believed to have shrunk 0.1 percent in the third quarter of the year, according to a September survey by the Bank of France which showed activity declining in both services and industry.

The forecast was the central bank's third estimate for gross domestic product during the months of July and September, and was unchanged from the previous survey forecast, published at the start of last month.

"In September, industrial activity declined globally(...)Order books were considered by business managers to be below normal levels. The capacity utilisation rate decreased slightly further," the Bank of France said in a statement.

The business sentiment indicator for industry fell to 92 in September from 93 previously, while production remained below the long-term average for the sector.

In services, the sentiment indicator was unchanged at 91, reflecting a decline in activity, although the bank said the outlook for October appeared slightly more positive.

Gross domestic product in France has stagnated over the past three quarters and economists see few signs of improvement on the horizon.

National statistics agency INSEE said last week it expected the euro zone's second biggest economy to have remained stagnant in the third quarter and to continue to post zero growth in the final quarter of the year.

(Reporting By Vicky Buffery)

((vicky.buffery@thomsonreuters.com)(+33 1 49 49 51 10)(Reuters Messaging: vicky.buffery.thomsonreuters@reuters.net))

Keywords: FRANCE ECONOMY