Paris - France's consumer price index stabilized in July with inflation at 3.6 per cent, down 0.2 per cent from the previous month and unchanged year on year, the country's statistics bureau INSEE said Tuesday in Paris.

France's economic growth appeared however to be losing steam with industrial output dropping 0.4 per cent in June to stand 1.4 per cent lower than the same month in
2007.

The automobile industry appeared particularly stymied, with manufacturing in the sector shrinking by 5.8 per cent for the second quarter.

Overall the French economy is expected to stagnate or shrink slightly for the second quarter, according to economists. (dpa)