France Business Confidence May 2016

France

France: Business sentiment hits seven-month high in April

April 21, 2016

According to the INSSE business climate survey, the business confidence indicator remained stable in May at April’s 105 points, which marks a seven-month high. Thus, the indicator remains above the long-term 100-point average, which is the benchmark measure the INSEE uses to distinguish between improving and worsening business expectations.

According to the INSEE, the result came on the back of businesses’ more optimistic assessment regarding two of the five components of the index, where past activity tallied its best reading in one year. The index was weighed down by a more pessimistic outlook on global order books and personal production expectations, while inventories’ outlook remained unchanged.

FocusEconomics Consensus Forecast panelists expect industrial production to expand 1.3% in 2016, which is down 0.4 percentage points from last month’s forecast. For 2017, participants expect industrial output to accelerate to a 1.8% expansion.


Author: Jean-Philippe Pourcelot, Economist

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France Business Confidence May 2016

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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