France: Business confidence rebounds in May
May 24, 2013
The monthly business sentiment index published by the National Statistical Institute (INSEE) rose from 88 to points in April to 92 points in May. The monthly print overshot market expectations that had the index inching up only to 89 points. As a result, business sentiment moved closer to its long-term average of 100 points.
In May, respondents were more optimistic about their past activity, but there was no change in their production outlook or in the export order books. In addition, the general production expectations sub-index, which represents business leaders' opinion on the French industry as a whole, also remained steady in negative territory over the previous month.
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.