France: Business confidence hits highest reading since July 2022 but remains pessimistic in February
Business confidence rose to 103.3 in February from January’s 101.9. February’s result marked the strongest sentiment since August 2022. As such, the index remained above the 100-threshold, signaling improving optimism in the business sector.
The headline print reflected a mostly broad-based improvement in sentiment: Confidence in manufacturing, services and trade rose, while it slightly worsened in construction. In addition, business employment sentiment fell slightly but remained significantly above its long-term average.
Commenting on the release, Charlotte de Montpellier, senior economist at ING, stated:
“The latest economic indicators for France suggest that activity is likely to be stronger than expected in the first quarter of 2023 and that a contraction in GDP should be avoided. Nevertheless, they do not dramatically change the outlook for the following quarters, where activity growth should remain rather weak.”