PostOlympics pullback to cut 0.2 points from Q4 growth
Some business leaders say economy in recession
Political crisis adding to economic uncertainty

PARIS, Reuters French economic growth is set to stall in the last three months of the year but not retreat as some business leaders fear, the central bank estimated on Tuesday in its monthly outlook.

Growth in the euro zone39;s secondbiggest economy was widely expected to cool after reaching 0.4 in the third quarter, buoyed by an influx of tourists for the Olympic Games in Paris over the summer.

The central bank estimated that the postOlympic pullback would reduce fourth quarter growth by 0.2 percentage points, implying that the French economy would otherwise grow 0.2 from the previous quarter.

However, the outlook is increasingly murky following the collapse of Prime Minister Michel Barnier39;s government last week over a budget dispute with opposition lawmakers.

The head of the Medef French employers39; federation Patrick Martin went so far as to say over the weekend that the economy was probably already in recession.

The central bank39;s monthly survey of business sentiment suggested activity was still expanding moderately in the dominant service sector but was pulling back in the industrial sector and in a more marked retreat in construction.

Industrial companies reported order books had fallen to levels not seen since the depths of the COVID crisis while manufacturers were operating at 74.7 of capacity, down…