French manufacturers and business confidence increases in April

| April 23, 2009 | 0 Comments

In April, business morale in France increased following record lows in previous months and this has increased the speculation that the worst of the recession is seemingly over.

The French national statistics office announced today that its business confidence index increased to 71 points in April, three points higher than in March and two points higher than economists’ predictions.

Having been in consecutive decline since March last year, the three point improvement is seen as a very positive swing.

This follows on from goods news in the French private sector even though it is estimated that the French economy shrank by 0.6 percent in the final quarter of 2008, and by 1.5 percent in the first quarter of 2009.

The demand for manufacturing goods has fallen and the Organisation for Economic Cooperation and Development estimates that unemployment in France will hit 10 percent by the end of the year, due to the lag time between the economy and unemployment.

Patrick Devedjian, the minister who is overlooking the country’s economic stimulus package that was unveiled by President Sarkozy back in December, said that the latest figures reveal that the economy could be back on track and unemployment will pick up fairly shortly with recovery in sight.

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