France Business Confidence May 2017


France: Business sentiment steady in May

May 23, 2017

According to the National Institute of Statistics and Economic Studies’ (INSEE) business climate survey on manufacturing activity, the indicator remained steady in May at April’s multi-year high of 109 points. The reading overshot market expectations of a drop to 108 points and marked the best print since June 2011. 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, May’s reading reflects an increase in two of the five components of the index. While manufactures viewed their personal and general expectations on a more positive light, they became more pessimistic of their past activity and volume of finished goods inventory. Despite dropping marginally, both compoents remains far above their long-term average.

Of the different industries in the manufacturing sector, sentiment improved in two of the four surveyed sectors and dropped in the other two but nevertheless remained 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 May 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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