French Manufacturing Confidence Strongest Since July 2022

(RTTNews) - The confidence among French manufacturers strengthened further in January to the highest level in three-and-a-half years, monthly data from the statistical office INSEE revealed Friday.

The manufacturing sentiment index rose to 105 in January from 102 in December. Meanwhile, economists had expected the index to fall to 101.

Further, the index remained above its long-term average of 100 and marked the highest reading since July 2022, when it was 106.1.

The strong improvement at the start of the year was mainly driven by personal production prospects and global order books, the survey said.

The index measuring general production expectations remained less negative in January, rising to -4 from -6 in December. Personal production expectations stayed more positive, with the sub-index strengthening notably to 17 from 10 in December.

Meanwhile, producers' past production situation eased from 9 to 7.

However, the index measuring overall order books increased to -11 from -27, and that for foreign order books rose to -6 from -7.

The sub-index for the expected trend in selling prices in the next three months decreased to 1 from 2.

The overall business confidence index, which comprises the responses of business leaders from sectors such as manufacturing, construction, services, retail trade, and wholesale trade, remained stable at 99 in January, almost closer to its average level of 100. Meanwhile, the employment climate index declined to 93 from 95.