Confidence among French manufacturers deteriorated in September, as industrialists cut their expectations about how much they would produce.
The manufacturing business climate index fell to 107 in September, below analysts’ expectations of 109 in a Thomson Reuters poll. The figure was also down from August’s reading of 110, the data published by national statistics agency Insee showed. However, the composite indicator for manufacturing remains “well above” its long term average of 100, Insee said.
Business executives were slightly less optimistic about general production prospects for the sector, while the drop in expectations for their personal production was also more significant than that seen in August.
Earlier in September, a survey of French business executives found that optimism had slumped over the month, with economists at IHS Markit pointing to a “broad based slowdown” across both the manufacturing and services sectors.
According to Tuesday’s data, the most significant decline in manufacturers’ business confidence was seen among executives in the food and beverages industry. The indicator in this sector declined by three points to 106, although that also remained above its historic average.
The business climate indicator in the machinery and equipment goods sector also faltered again. It fell one point to 107, largely as a result of views on export order books.
However, the balance of opinion on overall and export order books was broadly stable, above the long term average, as was industrialists’ opinions of the size of their past and expected workforces.
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