Paris: Business confidence in France's manufacturing sector rose more strongly than expected in April with company executives, buoyed by a jump in orders and a sharp improvement in recent production.
National statistics office INSEE said yesterday its monthly business morale indicator for April stood at 97, up four points on March. Analysts polled by Reuters had forecast the indicator would rise to 95.
"This shows that France has pulled out of the crisis. Overall, indicators which are higher than those from before the crisis," said Marc Touati of Paris-based Global Equities.
"It's very positive. It's going in the right direction, but it's still not a return to strong [economic] growth and remains fragile," he added.
Another survey out yesterday said the private sector in the euro zone's second-largest economy expanded at its fastest pace in four months in April, raising hopes economic growth was picking up.
The Markit/CDAF composite purchasing managers' index (PMI) rose to 58.4 in April, up sharply from 55.8 the previous month to hit its highest level since December 2009.
"If current levels are sustained throughout Q2, the data for April are consistent with GDP growth of approximately 0.5-0.6 per cent in France," said Chris Williamson, chief economist at Markit.
