FX.co ★ French Manufacturing Sentiment Weakens In April

The confidence level of the French manufacturing sectors saw a dip in April, largely due to a decline in order books, according to a monthly survey conducted by the French National Institute of Statistics and Economic Studies (INSEE).

In April, the manufacturing confidence index unexpectedly fell to 100, down from 103 in March, which had been upwardly revised. Experts had projected the index to be around 102.

The survey showed a noticeable retreat in the balance of opinions relating to the order books' condition, both domestically and internationally. The overall order book balance slipped to -19 from -13, and the foreign order books similarly dropped to -11 from -5 in March, marking its lowest point since September 2023.

Despite the decrease in confidence, manufacturing sector’s personal production expectations for the next three months remained above average, registering at 9 compared to 10 in the previous month. Meanwhile, regarding general prospects of production, the index remained stable at -7.

The survey also indicated that economic uncertainty among business leaders remained unchanged, with the corresponding balance standing at 28.

The balance of opinions concerning the current level of finished goods inventories showed an increase, moving up to 11 from 7.

Views on workforce size, past and expected, remained mostly steady. The index tracking past workforce size remained at 3, while the one predicting future workforce size slightly dipped to 4.

In terms of future selling price trends, the balance of opinion rose to +3 from the previous -1.

Taking into account responses from business leaders from various sectors, including manufacturing, construction, services, retail, and wholesale trade, the overall business confidence index fell from 100 in March to 99 in April. The survey was carried out from March 27 to April 22.