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FR: Business Climate Indicator
| Consensus | Consensus Range | Actual | Previous | |
| Index | 98 | 97 to 98 | 102 | 98 |
Highlights
Sentiment among manufacturing firms was the highest since March of last year, having risen to 102 in December from 98 in November, and moving above the long-term average of 100. The primary driver was improved sentiment on the other transportation equipment sector.
Overall sentiment among manufacturers of transportation equipment rose to 111 in December from 100 in November, with the reading for other transportation equipment improving to 118 from 103 in November. The mood among manufacturers of motor vehicles and equipment was more subdued at 97 in December versus 95 the previous month.
Among manufacturers of machinery and equipment, sentiment picked up marginally to 104 in December from 103 the previous month, as electrical equipment producers' sentiment rose to 105 from 99, offsetting a decline among computer, electronic, and optical products. While still positive at 111, that's down from 116 in November.
While still negative, overall order books showed improvement in December, rising to minus 17 from minus 20, with foreign order books gaining to minus 6 from minus 16. This underscores the continued challenge from domestic demand.
Today's data confirm other reports, including the PMIs, that French manufacturers have become more optimistic in their outlook for the next twelve months. It ends the year on a positive note, and should there be a budget resolution in the coming months, it will likely help spur domestic demand.
Market Consensus Before Announcement
No change expected at 98.
Definition
INSEE is France's National Institute of Statistics and Economic Studies. INSEE's business climate indicator aims to summarise the mood of French business leaders. The survey asks questions about output, orders and inventories and expectations for future business. These are synthesised into an overall index of sentiment, adjusted so that the long-run average is 100. The main focus is the manufacturing sector but the survey also provides separate confidence measures for construction, retail trade and services on a monthly basis and for wholesale trade every other month.
Description
If you are looking for clues on French business sentiment, this survey would be a good starting point. The indicator is based on a survey that asks business leaders about their expectations for new orders and their overall impressions of the economy. The results are a diffusion index that reflects the difference between positive and negative responses as a percentage of the total number of answers.