France: Business confidence deteriorates in April
Business confidence came in at 101.9 in April, down from March’s 103.1. April’s result marked the worst reading since September 2022. That said, the index remained above its long-term average of 100.
The decline in the headline print reflected a somewhat broad-based deterioration in sentiment: Confidence in manufacturing and the services sector worsened. That said, confidence in retail trade increased above the 100-mark, while confidence in the construction sector stayed constant.
Commenting on the outlook, senior economist at ING Charlotte de Montpellier argued:
“Ultimately, the business climate data indicate that the pace of growth of the French economy is likely to be sluggish in the coming quarters […] given the disrupted social context, the global economic slowdown, rising interest rates and still very high inflation.”