French Manufacturing Confidence Deteriorates

(RTTNews) - French manufacturing sentiment deteriorated more than expected in January on falling orders, survey results from the statistical office INSEE revealed Thursday.

The manufacturing sentiment index registered 95 in January, down from 97 in December. The score was expected to drop to 96.

The balances of opinion associated with the level of order books, both global and foreign, strongly retreated, mainly due to manufacturing of "other transport equipment."

The balance of opinion on past production rebounded sharply in January, with the index rising to -1 from -9. Meanwhile, assessment regarding the current level of finished-goods inventories retreated. The corresponding indicator fell to 10 from 15 a month ago.

Business managers' view on order books sharply retreated, the survey showed. The order book balance plunged to -27 from -18. Likewise, the foreign order books slid to -19 from -8.

However, the balances relating to production and general production prospects increased in January.

The balance relating to general production prospects in the industry started to rise anew after a decrease from three consecutive months. The index logged -15 compared to -19 in the previous month.

The personal production outlook indicator came in at +1, up from -1 in December.

Further, the balance on economic uncertainty felt by business leaders fell in January. The index dropped to 29 from 32.

Regarding labor market, managers' view on the past evolution of workforce size decreased again. The gauge slid to -5 from -3. The index measuring expected workforce size remained unchanged at -1.

The balance of opinion relating to the expected trend in selling prices over the next three months strongly rebounded with the index climbing to 9 from 2 a month ago.

Confidence among business managers from the main sectors, namely manufacturing, construction, services, retail and wholesale trade rose marginally in January. The business confidence index edged up to 95 from 94 in the previous month.