- French industrial confidence improved in August, with the index rising to 99 points from July’s 43-month low of 95 points.
- Economists had expected a smaller increase to 96 points, but the recovery was driven by better production expectations and an increase in foreign orders.
- The broader business confidence index, which includes services, construction, retail, and wholesale, also rose to 96 points in August from 94 points in July.
Paris, August 23 (FFN) – Sentiment in the French industrial sector improved more than anticipated in August, according to a report from RTTNews. The confidence index in the manufacturing sector rose to 99 points, up from July’s 43-month low of 95 points, as reported by the French statistical office INSEE.
Despite this improvement, the index remains below the long-term average of 100 points. Economists had forecasted an increase to only 96 points. The main driver of the August recovery in the industry was the improvement in production expectations and a rise in foreign orders, the statisticians noted.
The index of individual production expectations increased to 8 points from -5 points in July. However, the index assessing the past production situation dropped to -14 points from -6 points. The order index improved to -16 points from -20 points.
The broader business confidence index, which covers sectors beyond manufacturing including services, construction, retail, and wholesale, also rose to 96 points in August, up from 94 points in the previous month.
| Index | July 2024 | August 2024 | Expectations |
|---|---|---|---|
| Manufacturing Confidence Index | 95 points | 99 points | 96 points |
| Individual Production Expectations | -5 points | 8 points | (Not Provided) |
| Past Production Situation | -6 points | -14 points | (Not Provided) |
| Order Index | -20 points | -16 points | (Not Provided) |
| Broader Business Confidence Index | 94 points | 96 points | (Not Provided) |
