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PARIS (Reuters) - Hosting the Olympic Games gave a boost to France's service sector in August but the country's political crisis still clouds the economic outlook, the central bank said on Tuesday in its monthly business survey.
The euro zone's second-biggest economy is on course for underlying growth of 0.1-0.2% in the third quarter from the previous month, the Bank of France said, leaving its estimate unchanged.
The Olympics could add another quarter percentage point of growth as the Games increased activity in hospitality, event management and security, particularly in the Paris region.
However, the full impact, including ticket sales, broadcasting revenues and employee bonuses, was not fully reflected in the survey, the central bank said.
France's national statistics agency forecast on Monday the economy would see 0.4% growth in the third quarter, but would then reverse into a 0.1% contraction in the fourth quarter as the Olympics boost fades.
The central bank's monthly survey of 8,500 businesses found that activity remained challenging in other sectors than services with manufacturing struggling as demand for electric vehicles softens and transport equipment makers deal with supply chain problems.
Meanwhile, the construction sector remains weak with executives flagging concerns about an ongoing political crisis weighing on decisions for new investments and public contracts.
Recruitment difficulties also rose slightly, with 36% of businesses reporting challenges in August, up from 33% in July, though the increase was mostly in sectors affected by the Olympics.
(Reporting by Leigh Thomas; Editing by Alexandra Hudson)
