Bank of France trims fourth quarter French growth forecast after Paris attacks

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PARIS The Bank of France cut its forecast for French economic growth to 0.3 percent on Tuesday, blaming in part the hit to hotel bookings and restaurant takings from Islamist militant attacks in Paris last month.

The central bank gave its updated estimate for gross domestic product (GDP) in a monthly business sentiment survey which showed the index for morale in the service sector fell in November to 96 from a downwardly-revised 97 in October.

The bank said the Nov. 13 attacks in and around Paris that killed 130 people had taken their toll on activity in the hotel, leisure and restaurant sectors last month.

That chimed with findings from Markit's PMI surveys earlier this month, which showed slowing growth in the French services sector due to the attacks.

The tourism industry accounts for about 7.3 percent of French GDP.

Also on Tuesday, the country's flagship airline, Air France-KLM (AIRF.PA), reported a 50 million euro hit to its revenue in November as a result of the attacks.

France's biggest hotel chain, AccorHotels (ACCP.PA), has also said bookings have suffered.

Looking beyond November, the Bank of France said business managers expected activity in most sectors of the services industry to grow in December.

The survey also indicated that sentiment in the industrial sector fell to 98 in November from 99 in October. But here again, the bank said business managers were expecting a slight rise in industrial production in December.

In a sign of strengthening domestic demand, the customs office reported a 2.3 percent rise in French imports in October, but stagnant exports meant France's monthly trade deficit reached its highest since September 2014.

Its budget deficit showed signs of improvements, however, standing at 76.2 billion euros by end-October, lower than the 84.7 billion euros registered last year at the same stage.

(Reporting by Michel Rose; editing by Dominique Vidalon and Leigh Thomas)