PARIS (Reuters) – The manufacturing sector in France, currently in difficulty, could soon see a recovery, estimates S&P Global in a survey published on Monday, which shows that business confidence reached its highest level in 27 months in May.
The final indicator figure for May stood at 46.4, compared to 45.3 in April and 46.7 in the first estimate.
It thus remains below the 50 mark separating growth and contraction in activity.
The sub-index on business prospects for the coming year, however, jumped to 55.1, from 51.1 the previous month, the highest level since February 2022, the start of Ukraine’s invasion of Ukraine. Russia, notes S&P Global.
Improving business confidence indicates that France’s manufacturing sector may have reached its lowest point.
“The manufacturing sector around the world is recovering, which will benefit French industrialists (…) Domestic demand in France should soon experience a radical turnaround,” predicts Norman Liebke, economist at the Hamburg Commercial Bank.
(Written by Tassilo Hummel; Claude Chendjou, edited by Blandine Hénault)
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