France: Business confidence drops in April
April 23, 2013
The monthly business sentiment index published by the National Statistical Institute (INSEE) declined from 91 to points in March to 88 points in April. The monthly print was slightly below market expectations that had the index falling to only 89 points. As a result, business sentiment moved further away from its long-term average of 100 points. In April, respondents were more pessimistic about their past activity and assessed a deterioration in their production outlook as well as in both total and export order books. In addition, the general production expectations sub-index, which represents business leaders' opinion on the French industry as a whole, fell slightly over the previous month and remains mired in negative territory. According to the Central Bank's monthly index of business activity (MIBA), GDP is expected to increase by 0.1% in the first quarter. FocusEconomics Consensus Forecast panellists maintain a more pessimistic view and see the economy contracting 0.2% in the first quarter of 2013.