French business confidence Index rose in January - INSEE

According to the report from the INSEE, the business climate in industry has improved in January. It has risen by 4 points and now stands at 98, catching up for the first time its early March level, just before dropping because of the national lockdown. The rise in the balance of opinion on overall order books and to a lesser extent, the one of the balance on past production, have driven the business climate upwards. However, the balance of opinion on general production prospects has slightly dipped.

The industrialists’ opinion on overall order books has noticeably improved this month, whereas the associated balance of opinion had experienced a growth at best lackluster since its partial rebound during summer and had edged down in December. Yet, it has remained well below its long-term average. This balance has increased in all main sub-sectors of the industrial sector.

The industrialist’s opinion on their production during the past three months has again improved in January 2021, after it had occasionally deteriorated last month probably under the influence of the second lockdown. The balance of opinion remains fairly significantly above its average.

In January, industrialists have raised a little their personal production prospects, confirming last month rebound. However, the balance of opinion on general production prospects in the French industrial sector has shrunk, after having rebounded strongly in December. Both of these balances are close to their long-term level.