France Business Confidence August 2017

France

France: Business sentiment reaches almost ten-year high in August

August 25, 2017

According to the National Institute of Statistics and Economic Studies’ (INSEE) business climate survey on manufacturing activity, the business sentiment index jumped from 108 points in July to 111 points in August, the highest print since December 2007. The indicator is well 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, August’s reading reflected a more optimistic outlook in almost all components of the index. Manufacturers’ views on personal production and their past activity improved in the surveyed month and are significantly above their long-term average. Their outlook on export order books and general production expectations were largely unchanged but remain elevated. On the other hand, manufacturers perceived finished-good inventories in a more negative light.

Regarding the different industries in the manufacturing sector, sentiment improved in manufacturing of food products and beverages, but declined slightly in manufacturing of machinery and equipment goods.

FocusEconomics Consensus Forecast panelists see fixed investment growing 2.6% in 2017, which is up 0.2 percentage points from last month’s estimate. For 2018, the panel also sees investment expanding 2.6%.


Author: Jean-Philippe Pourcelot, Economist

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France Business Confidence August 2017

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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