French Manufacturing Sentiment Strengthens Unexpectedly

(RTTNews) - French manufacturing confidence strengthened unexpectedly in October to the highest level in more than a year, data from the statistical office INSEE showed on Thursday.

The manufacturing confidence index rose to 100.7 in October from 96.7 in September, while the reading was forecast to drop to 96.0. Moreover, the score was the highest since March 2024.

Personal production prospects sharply increased in October, with the index rising to 18 from 8 in the previous month. The index hit the highest level since February 2022.

By contrast, the balance on past production deteriorated to -13, the lowest level since October 2024.

Both global and foreign orders rebounded in October. The overall order books improved to -16 from -22, and the foreign order books climbed to -5 from -16.

The balance of opinion on the current level of finished-goods inventories registered 18, the strongest since August 2023.

The balances of opinion relating to the evolution of workforce size, both past and expected, were almost stable. The indicator for past workforce size posted -4 and the expected workforce size rose one point to zero.

Assessment about the general production prospects in the industry strengthened in October. The corresponding index climbed two points to -11.

The balance of opinion relating to the expected trend in selling prices over the next three months doubled to 4 from 2.

As for the balance of opinion on economic uncertainty felt by business leaders, it was stable at 31.

The overall business confidence index, which comprises the responses of business leaders from sectors such as manufacturing, construction, services, retail trade, and wholesale trade, improved slightly to 97 in October from 96 in September.

The survey was conducted between September 26 and October 20.