France: Business expectations worsen in July
July 23, 2014
The monthly business sentiment index published by the National Statistical Institute (INSEE) edged down from the 98 points tallied in June to 97 points in July. The result marked the third consecutive drop and drove the index to its lowest value since September 2013. The print also fell short of market expectations that the index would hold steady at 98 points. The indicator remains below its long-term 100-point average, which is the benchmark measure the INSEE uses to distinguish between improving and worsening business expectations.
July’s deterioration was mainly driven by businesses’ deteriorating views regarding expected changes in output and their expectations for their situations in the future. Firms did not change their assessment of their current situations compared to last month. Regarding demand and total orders, businesses were slightly less pessimistic in July.