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France Business Confidence January 2018

France: Business sentiment improves in January

According to the National Institute of Statistics and Economic Studies’ (INSEE) business climate survey on manufacturing activity, the business sentiment index inched up from 112 points in December to 113 points in January. January’s print overshot market expectations, which had seen the indicator remaining steady at 112 points. It is currently resting well above the 100-point long-term average, the INSEE’s benchmark measure to distinguish between improving and worsening business expectations.

According to the INSEE, general production expectations in January climbed to the highest level since July 2000. Views on export order books also increased, reaching the best print since December 2007. Manufacturers’ view on their personal production expectations remained broadly unchanged, currently resting far above the long-term average.

Regarding the different industries in the manufacturing sector, sentiment improved among manufacturers of transport equipment and of machinery and equipment goods. In contrast, sentiment declined slightly among manufacturers of good products and beverages.

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