French business climate picks up in June: INSEE

28th June 2005, Comments 0 comments

PARIS, June 28 (AFP) - The French business climate picked up slightly in June after a four-month decline, the national statistics institute INSEE reported on Tuesday, citing a survey of French industrialists.

PARIS, June 28 (AFP) - The French business climate picked up slightly in June after a four-month decline, the national statistics institute INSEE reported on Tuesday, citing a survey of French industrialists.

It said its business sentiment index rose to 99 from 97 in May, with respondents reporting a slight decline in stocks of finished goods and an improvement in domestic and foreign order books.

Prospects for production in the next three months were also seen as strengthening, according to INSEE.

But the agency likewise noted that a component of the index measuring an assessment of the general business situation continued to weaken in June.

Commenting on the overall improvement in the index, Alexandre Bourgeois of Natexis Banques Populaires said it "confirmed the positive reaction of French business leaders to a weakening of the euro."

"The favourable impact of this decline in the value of the euro seems to have more than offset the negative impact of higher oil prices."

He said the weaker euro should boost the competitiveness of French products but warned that evidence of such an improvement should not be seen before the end of the year.

Copyright AFP

Subject: French news

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