Bank of France cuts French first quarter growth f'cast to 0.3 percent

PARIS (Reuters) - The French economy is on course to grow 0.3 percent in the first quarter, the Bank of France said in its latest business survey on Monday, revising down its forecast from an earlier 0.4 percent.

The central bank's business sentiment indicator showed a slight cooling in February to 96 from 98 in January, while sentiment in the services sector rose to 92 from 91.

"Business leaders expect a more marked increase in industrial activity in March," it noted, adding that they also saw a strengthening of activity in services this month.

President Francois Hollande's government expects growth of 1.0 percent this year after the 0.4 percent seen last year. In comments this month, Hollande has renewed his optimism that a tentative recovery is setting in.

(Reporting by Mark John; editing by Nicholas Vinocur)