Survey: French industry faces record investment drop

31st August 2009, Comments 0 comments

French industrial sector investment could drop a record 21 percent this year, a survey released by the official statistics institute showed, underlining the tenacity of the downturn.

Paris - French industrial sector investment could drop a record 21 percent this year, a survey released by the official statistics institute showed, underlining the tenacity of the downturn.

In a previous report by the INSEE institute published in April, French industrialists had said they expected investment to fall 18 percent in 2009.

The investment decline in the manufacturing sector alone was forecast in April at 21 percent, which had deteriorated to 23 percent in Friday's survey.

Helped by government aid and a "cash-for-clunkers" bonus scheme, the outlook for investment in the troubled auto industry has improved since April but was still set to fall 18 percent over the year, the INSEE survey found.

France emerged from a technical recession in the second quarter of this year, raising hopes of an economic recovery, but the country is still beset by rising unemployment and falling exports.

AFP / Expatica

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