- Industrial confidence in France improved more than anticipated in August, with the index rising to 99 points from July’s 43-month low of 95 points.
- Economists had forecasted a smaller increase to 96 points, but stronger production expectations and higher foreign orders drove the recovery.
- The broader business confidence index, including services, construction, and retail, also increased to 96 points from 94 points in July.
Paris, August 23 (FFN) – Sentiment in the French industrial sector improved more than expected in August, according to a report from RTTNews. The manufacturing confidence index rose to 99 points, up from July’s 43-month low of 95 points, as reported by the French statistical office INSEE.
Despite the improvement, the index remains below the long-term average of 100 points. Economists had expected a smaller increase to 96 points. The main drivers of the August recovery were the revival of production expectations and a rise in foreign orders, according to the statisticians.
The index of individual production expectations jumped 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 includes sectors beyond manufacturing, such as 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) |
