France Business Confidence

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France: Business confidence drops further in May

May 24, 2012

In May, the business sentiment index published by the National Statistical Institute (INSEE) fell to 93 points from 95 points in April. The drop exceeded market expectations, which had business confidence falling to 94 points. As a result of the monthly fall, business sentiment moved further down from its long-term average of 100 points, where it has now languished since September 2011. The monthly result reflected a substantial deterioration in general production expectations. In addition, demand and total order levels worsened notably over the previous month. According to the Central Bank's monthly index of business activity (MIBA), GDP will be flat in the second quarter, which contrasts INSEE's forecast of a 0.2% expansion.


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