French business confidence improves slightly in September

French statistical office Insee published France business climate indicator which showed an improvement of one point to 102 after dipping last month. Data was better than economists' expectations for a flat reading. Business confidence has now been at or above its long-term average of 100 for more than a year.

Details of the report showed the climate has gained two points in manufacturing and one point in services. However, it has lost five points in wholesale trade and one point in retail trade. It remained stable in building construction.

In manufacturing, business managers were more upbeat on production prospects, and order books increased overall despite exports remaining largely unchanged. Manufacturers of food products were particularly positive, bouncing back 8 points after a 7-point decline in August.

"INSEE business sentiment survey added to evidence that French economic growth should have returned to moderate positive territory in the third quarter after a flat Q2," said Daiwa Capital Markets in a report to clients.