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.