The Bank of France business confidence indicator for manufacturing sector is expected to have risen in July. According to a Societe Generale research report, the business sentiment indicator is likely to have increased to 99 last month from 97. This is after the INSEE manufacturing confidence survey posted an improvement for the same period. This would affirm that the June’s decline was due to the recent disturbances, such as gasoline disruptions, strikes in the transport sectors.
A weaker euro, a structurally lower oil price, improved credit channels and low debt services costs and the ongoing tax cuts continue to underpin business confidence, stated Societe Generale. French business sentiment is likely to steadily rebound in the future.
The uncertainty from the UK’s vote to leave the EU is expected to cap any significant improvement. Also, the Bank of France will release its initial estimate for the third quarter growth, which is likely to be around 0.3 percent to 0.47 percent quarter-on-quarter, added Societe Generale.
