PARIS, Feb 8 (Reuters) - France's economy will expand by 0.3 percent in the first quarter, the Bank of France said on Wednesday in its first forecast for the period, showing a slight deceleration from the 0.4 percent growth posted in the final quarter.
The Bank of France added that the business sentiment indicator for the manufacturing industry had edged down to 101 points in January compared to 102 in December, but the central bank said business leaders expected production to increase in February.
The business climate indicator for the dominant services sector rose to 101 points in January, the highest reading since June 2011, compared to an upwardly revised 100 in December, it added.
"According to business leaders, activity should rise again in February," the bank said in a statement.
Activity remained unchanged in the construction sector, with the index standing at 100 points. Business managers expect activity to increase this month, the bank said.
For a graphic of GDP by contributions: link.reuters.com/pyx28s
Reporting by Michel Rose; Editing by Sudip Kar-Gupta