France: Business confidence exceeds expectations in July
July 23, 2013
The monthly business sentiment index published by the National Statistical Institute (INSEE) rose to 95 points in July (June: 93 points) and overshot market expectations of 94 points. As a result, business sentiment reached the highest level in 14 months and moved closer to the long-standing 100-point average.
Respondents were less pessimistic about their demand and total order levels in July. The general production expectations sub-index, which represents business leaders' opinions on the French industry as a whole, improved substantially compared to June. Meanwhile, the stocks of finished goods index remained generally unchanged below its normal level.
According to the Central Bank's Monthly Index of Business Activity (MIBA), GDP expanded by 0.2% in the second quarter. FocusEconomics Consensus Forecast panellists estimate that GDP growth was flat in the second quarter. Official second quarter GDP data will be released on 14 August.