French business confidence index remains stable in November

The French business climate index remains widely stable in November. The INSEE business sentiment survey released today implied that the French business conditions were stable in the middle of the fourth quarter, with the headline survey index coming in at 104. Nevertheless, since the end of last year, when it reached a post-crisis high, like countless other survey indices this indicator has been following a clear downward trajectory, noted Daiwa Capital Market Research in a report.

While the sentiment continues to be above the long-term average, the latest readings are in line with a softening of economic momentum. Delving into details, the survey’s manufacturing, construction and retail trade components all recorded small rebounds, while service sector confidence stayed the same.

However, the employment climate index dropped by 2 points to 105, the lowest since early 2017, mainly due concerns about conditions in the services sector.

“The French unemployment figures released earlier this week showed that the unemployment rate was merely stable in Q3 at a still-high 9.1 percent (8.8 percent on the mainland). So, while employment conditions appear to remain broadly favourable, the pace of labour market tightening in France appears to have slowed”, added Daiwa Capital Market Research.

At 18:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at 16.433, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -14.4406. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex