August 27, 2014

The monthly business sentiment index published by the National Statistical Institute (INSEE) fell for a fourth consecutive month in August. The indicator edged down from the 97 points recorded in July to 96 points, which marked the lowest level since September 2013. The print also undershot market expectations that the index would hold steady at 97 points. The indicator remains below its long-term 100-point average, which is the benchmark measure the INSEE uses to distinguish between improving and worsening business expectations.



August’s deterioration stemmed from businesses’ more pessimistic assessment regarding general production expectations in the manufacturing industry as well as their view regarding their personal production expectations. Meanwhile, global order books and inventories were unchanged over the previous month.

FocusEconomics Consensus Forecast panelists see private investment expanding 0.3% in 2014, which is down 0.2 percentage points over the previous month’s estimate. For 2015, the panel sees investment expanding 1.8%.