France: Business sentiment drops to over-one-year low in August
August 25, 2016
According to the National Institute of Statistics and Economic Studies (INSEE) business climate survey, the business confidence indicator dropped from 103 points in July to 101 points in August. The reading, which marks the lowest print since June 2015, undershot market expectations of 103 points. Despite the drop, the indicator remains 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, the result reflected businesses’ nearly broad-based pessimistic outlook of the economy. Looking at the details, personal production expectations dropped to the lowest point in two years and businesses grew more pessimistic on global order books, which dropped to the lowest level since November 2015. Businesses in the manufacturing and retail sector became more pessimistic while sentiment in the services and building construction industries was largely unchanged.