France: Business confidence improves modestly in June
June 25, 2013
The monthly business sentiment index published by the National Statistical Institute (INSEE) inched up from to 92 points in May to 93 points in June. The monthly print matched market expectations. As a result, business sentiment reached the highest level in nine months, and moved closer to its long-term average of 100 points.
In June, respondents were less pessimistic about their demand and exports order levels. In addition, the general production expectations sub-index, which represents business leaders' opinion on the French industry as a whole, also improved somewhat. Meanwhile, stocks of finished goods remained nearly steady below their normal levels.
According to the Central Bank's monthly index of business activity (MIBA), GDP is expected to increase by 0.1% in the second quarter. FocusEconomics Consensus Forecast panellists maintain a more pessimistic view and see flat economic growth in the second quarter of 2013.