Lower oil prices and a weaker euro should play out, while French government measures including tax cuts (CICE) should start to positively impact business confidence. The continuing improvement is expected over the coming months.
According to Societe Generale, the French National Statistical Institute (INSEE) business confidence index for the whole economy is expected to improve from 96 to 97 in April, while the manufacturing index should remain unchanged for a fifth consecutive month at 99.
French business leaders still need to be convinced that all these positives can materialize into a solid recovery.
Nevertheless, the positives are significant enough to boost the INSEE business survey above historical levels (100).
