France Business Confidence August 2021


France: Business confidence rises to over three-year high in August

August 26, 2021

Business confidence came in at 110 in August, marginally above 109 in July, marking the highest reading since June 2018. As such, the index moved further above the 100-threshold, indicating optimism among businesses.

August’s upturn was largely attributed to improved firms’ sentiment with regards to their finished-goods inventory, as well as a rosier appraisal over their past activity. On top of this, employment intentions improved over the prior month and businesses grew more optimistic regarding their own production expectations. That said, firms’ assessment of overall order books turned gloomier.

FocusEconomics Consensus Forecast panelists see fixed investment expanding 9.9% in 2021, which is up 0.1 percentage points from last month’s forecast, and 4.4% in 2022.

Author:, Economist

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France Business Confidence Chart

France Business Confidence August 2021

Note: Value of monthly business sentiment indicator index; long-term avg. at 100.
Source: National Institute of Statistics and Economic Studies (INSEE).

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