October sa mfg sentiment index: 97 (down 2 points)

Previous results: 99 Sep, 102 Aug, 105 Jul, 110 Jun, 106 May, 109 Apr

September sa own-company production outlook: 4 (down 2 points)
Previous results: 6 Sep (4), 9 Aug, 6 Jul, 16 Jun, 9 May, 13 Apr, 27 Mar

September sa overall production outlook: -29 (up 1 point)
Previous results: -30 Sep (-29), -13 Aug, 3 Jul, 13 Jun, 15 May , 21 Apr
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PARIS (MNI) – Industry confidence in France maintained its downward
trend in October, falling for the fourth consecutive month, as companies
grew more pessimistic regarding foreign demand and their own production
outlook, the national statistics institute INSEE reported on Friday.

Falling two points to 97, the sentiment indicator reached a
15-month low and slipped further below the long-term average of 100.

Recent output growth was reassessed downwards for all sectors
except food and beverages, which posted a modest recovery following
September’s sharp fall. However, October’s positive reassessment was not
enough to bring the sub-indicator back above the long-run average of 6.

Among the sectors where recent production trends deteriorated,
assessments remained above average only in the automotive industry.

Order books deteriorated sharply in the electronic, IT,
pharmaceutical, chemical, synthetics and metal industries, which offset
modest improvements in agriculture and food, and in transportation
equipment.

The decline in demand from abroad was especially significant, with
a vast majority of sectors reporting thinning foreign order books in
October. As a result, the overall foreign demand sub-index fell to its
lowest level since September 2010.

The own-company production outlook also suffered this month,
slipping one point below the long-run average, while stocks rose
slightly to average levels.

On the other hand, whole sector production outlook recovered
slightly in October, rising by one point, following September’s 33-point
drop. INSEE’s turning-point indicator also rose, though it continues to
point to “unfavourable” developments.

Mirroring the decline in INSEE’s sentiment indicator, the Bank of
France’s sentiment index showed a majority of manufacturers revising
down their production expectations in October. The bulk of respondents
were also pessimistic regarding overall demand in September.

Manufacturers polled in September’s PMI survey reported staffing
cuts for the first time in a year, as output and new orders fell,
suggesting they don’t expect a recovery in the near term.

— Paris newsroom +331 4271 5540; e-mail: paris@marketnews.com —

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