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France Business Confidence January 2023

France: Business confidence among manufacturing firms increases in January

Business confidence among manufacturing firms rose to 103.1 in January from December’s 102.1. Consequently, the index remained above the 100-threshold, signaling optimism among manufacturing firms.

The headline print reflected improved sentiment regarding past production, foreign order books and personal production expectations. That said, sentiment worsened regarding overall order books, expected workforce size and general production expectations. Meanwhile, the economic uncertainty felt by the business managers decreased but remained above average.

Commenting on the release, Charlotte de Montpellier, senior economist at ING, stated:

“We expect 2023 to be characterised by near-stagnation in the French economy in all quarters of the year. […] Industrial production should continue to see supply difficulties ease but would face much weaker global demand and would still be at risk of a further significant rise in global energy prices.”

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