France Business Confidence May 2018


France: Business sentiment unchanged in May

May 24, 2018

The National Institute of Statistics and Economic Studies’ (INSEE) business sentiment index for the manufacturing sector remained steady in May at April’s 109 points. The indicator remained above the 100-point long-term average, the INSEE’s benchmark measure to distinguish between improving and worsening business expectations.

May’s reading reflected manufacturers’ mixed views on the economy. While firms’ production expectations increased in May compared to the previous month, their views on general production expectations declined but remained comfortably above the long-term average. Their outlook on overall order books were unchanged, but their view on export order books dipped slightly. In turn, expected workforce size increased, and finished good inventories were viewed in a more positive light.

Regarding the different industries in the manufacturing sector, sentiment improved in the machinery and equipment goods sector, but remained unchanged in the food products and beverages sector. Sentiment deteriorated, however, among manufacturers of transport equipment.

FocusEconomics Consensus Forecast panelists see fixed investment growing 2.8% in 2018, which up 0.2 percentage points from last month’s estimate. For 2019, the panel sees investment expanding 2.4%.

Author: Jean-Philippe Pourcelot, Economist

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France Business Confidence Chart

France Business Confidence May 2018

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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