France: Business confidence deteriorates in September
September 23, 2011
In September, the business sentiment index published by the National Statistical Institute (INSEE) dropped to 99 points from 105 points in July (August estimate: 102 points). The reading was below market expectations, which saw the index easing to 100 points, and marked the lowest level since August 2010. With the monthly decrease, business sentiment fell below its long-term average of 100 points. The fall in business confidence reflected a sharp deterioration in the general production outlook. In addition, personal production perspectives, as well as demand and total order levels, deteriorated over the previous month. The decline in business confidence does not bode well for economic activity in the months ahead. According to the Central Bank's monthly index of business activity (MIBA), GDP will expand 0.1% in the third quarter, which was down 0.1 percentage points over the previous estimate.