PARIS Dec 14 A rebound in the French
construction sector will accelerate next year, provided
government measures supporting the sector are not scrapped after
the 2017 presidential election, the head of the French building
federation (FFB) said on Wednesday.
After eight years of recession, construction activity in
France - home to construction companies such as Bouygues
, Vinci and Eiffage - is seen
rising to 1.9 percent in volumes this year.
It is then seen accelerating further to 3.4 percent in 2017,
mostly driven by new residential housing.
A potential reduction in public spending after the May 2017
election, if extended on measures such as the PTZ scheme of
zero-interest-rate loans for first time buyers or the CITE tax
credit to encourage energy efficient home improvement work,
could derail that recovery and threaten 100,000 jobs in the
sector, Jacques Chanut, head of the FFB told a news conference.
The building sector - excluding infrastructure projects -
accounts for around six per cent of national output, employing
around 1.1 million people.
France's economy will expand by 0.4 percent in the fourth
quarter, the Bank of France said earlier this month, saying
there was a pick-up in sentiment for construction, with the
business sentiment indicator for that sector rising to 100 in
November from 99 in October.
(Reporting by Gilles Guillaume and Dominique Vidalon; Editing
by Sudip Kar-Gupta)