France: Business confidence drops to lowest level in over three years
October 23, 2012
The October business sentiment index published by the National Statistical Institute (INSEE) fell to 85 points from 90 points in September. The reading contrasted market analysts' expectations, who had seen confidence remaining stable at 90 points. At the current level, business sentiment is at its lowest level in over three years, and remains well below its long-term average of 100 points. The monthly result reflected notable deteriorations across all categories, especially for demand and total order levels, which worsened as a lack of economic growth in the Euro area continues to weigh on the external sector. Meanwhile, the general production outlook, which represents opinions on French industry as a whole, deteriorated sharply.