Bank of France business sentiment to improve in October

The French services PMI was revised upwards last week from the flash figure (from 52.3 to 52.7), and the Bank of France business sentiment indicator is expected to follow suit, rising from 97 to 98 for October. Increased disposable income and higher corporate profit margins should firm up confidence. 

The indicator has room to catch up with the PMIs and the reliable INSEE survey, and a jump to 99 would not surprise (long-term average = 100). The Bank of France will also release its first estimate for Q4 GDP growth on Friday.