PARIS (MNI) – Optimism among service providers in France hit a
19-month low, as the general outlook on activity and recent business
trends continued to worsen, the national statistics institute INSEE
reported on Friday, citing its sentiment survey.
Extending its string of consecutive declines to four months,
October’s one-point drop pushed the sentiment indicator to 94, its
lowest level since March 2010 and six points below the long-run average.
Firms’ expected turnover recovered in October, with a majority of
respondents now projecting their business activity will improve in the
short run.
However, the bulk of service providers still have a negative
outlook for general activity, with the majority — though a smaller
majority than last month — expecting demand to worsen in the coming
months. Recent changes in turnover and in the overall business situation
were assessed more negatively.
The latest Bank of France survey showed expectations for activity
in October falling sharply, giving back nearly all the gains in optimism
from September.
As growth in new orders decelerated in September to its slowest
pace in just over two years, Markit’s Purchasing Manager Index report
noted deteriorating client confidence amid heightened economic
uncertainy. Business expectations also sank, the PMI added.
“Confidence has clearly taken a hit amid the Eurozone debt crisis
and deteriorating global economic conditions, with service providers
signalling the lowest optimism since April 2009,” Markit Senior
Economist Jack Kennedy said in a press release.
— Paris newsroom +331 4271 5540; e-mail: paris@marketnews.com —
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