French Manufacturing Sentiment Weakens

(RTTNews) - French manufacturing sentiment weakened to a three-month low in February on falling production outlook and orders, survey results from the statistical office INSEE showed Tuesday.

The manufacturing confidence index dropped more-than-expected to 102 from 105 in the previous month. The score was forecast to drop marginally to 104.

This was the lowest reading since November and remained below its long-term average of 100.

The overall weakness in sentiment largely reflects deterioration in manufacturers' opinion regarding production and their global order books.

The past production index fell to 3 in February from 7 in the previous month. Meanwhile, the index measuring finished-goods inventory rose to 9 from 7.

Assessment about overall order books weakened notably with the balance falling to -16 from -11. At the same time, manufacturers' view about foreign order remained unchanged as the index remained at -6.

The index for personal production prospects dropped sharply to 10 from 18. The general production prospects index declined less markedly to -6 from -4.

The balances of opinion relating to the evolution of workforce size, both past and expected, decreased. The one on the expected evolution fell slightly to -2, while the one on the past evolution declined to -6 from -3.

The balance of opinion on economic uncertainty felt by business leaders slightly declined. The corresponding index came in at 32, down from 33 in January.

The balance of opinion relating to the expected trend in selling prices over the next three months increased after three months of stability. The indicator rose to 5 from 2 in the prior month.

The overall business confidence index, which comprises the responses of business leaders from sectors such as manufacturing, construction, services, retail trade, and wholesale trade, fell to 97 in February from 99 in January. The employment climate index declined marginally to 93 from 94.