France Business Confidence June 2017


France: Business sentiment declines marginally in June

June 22, 2017

According to the National Institute of Statistics and Economic Studies’ (INSEE) business climate survey on manufacturing activity, the indicator ticked down from May’s multi-year high of 109 points to 108 points in June. The reading undershot market expectations that it would remain steady at 109 points. Despite the drop, the indicator is still above the 100-point long-term average, which is the benchmark measure the INSEE uses to distinguish between improving and worsening business expectations.

According to the INSEE, June’s reading reflects a drop in two components of the index. Manufacturers perceived their past economic activity and their own production expectations in a more negative light. Despite the drop, both indicators remain above their long-term average. On the other hand, general production prospects for the sector improved notably and reached the highest print in 10 years while export order books remained unchanged.

Regarding the different industries in the manufacturing sector, sentiment improved in only one of the four surveyed sectors, while one was unchanged and the two remaining sectors dropped although they did remain above average.

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 1.9% in 2017, which is unchanged from last month’s forecast. For 2018, participants expect fixed investment to expand 2.3%.

Author: Jean-Philippe Pourcelot, Economist

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France Business Confidence Chart

France Business Confidence June 2017 0

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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