France: Business confidence deteriorates again in June
June 25, 2014
The monthly business sentiment index published by the National Statistical Institute (INSEE) edged down from the 99 points tallied in May to 98 points in June. The result marked the second consecutive drop following five consecutive months of a 100-point reading. The print also fell short of market expectations that the index would hold steady at 99 points. The indicator now sits below its long-term 100-point average, which is the benchmark measure the INSEE uses to distinguish between improving and worsening business expectations.
June’s deterioration was broad-based. Whereas business leaders’ expectations regarding the future businesses situation were stable in June, their assessments of their current business situations fell to the lowest level in eleven months. Moreover, businesses were markedly more pessimistic regarding demand and total orders, whereas they didn’t expect economic output to worsen.