European Economic News
11/24/2009 5:01 AM ET
(RTTNews) -
Business confidence in the French manufacturing industry stabilized in November, while consumer spending in October rose more than expected.
The business confidence indicator stood at 89 in November, unchanged from October, statistical office Insee said Tuesday. Economists had forecast a reading of 91.
A measure for personal production expectations in November was steady at October's revised reading of minus 3. Meanwhile, the general production outlook improved to minus 9 from the previous month's revised reading of minus 10.
Survey data released by Markit Economics on Monday showed that the flash purchasing managers' index for French manufacturing unexpectedly fell to a two-month low in November, suggesting that the pace of increase in manufacturing output slowed from October. The survey also found that manufacturers again recorded a weakening in growth of new export sales, which partly pulled down overall manufacturing new order growth from October's near three-year high.
Latest Insee data showed that an indicator for demand and total orders level was steady at minus 55 in November, while a measure for export orders decreased to minus 51 from minus 49. Official data showed on November 10 that French industrial production fell 1.5% month-on-month in September after a revised 2.8% increase in August. On the same day, results of a separate survey conducted by the Insee showed that business managers downwardly revised their forecast for industrial investment, indicating that the manufacturing industry is still facing hurdles.
Also on Tuesday, Insee said French consumer spending on manufactured goods increased 1.1% month-on-month in October, slower than the 2.4% growth in the previous month, which was revised from the 2.3% increase reported initially. Economists expected an increase of 0.4%.
Expenditures in durables increased 1.3% month-on-month in October after an acceleration in September due, in particular, to car sales. Car sales grew 0.6% only after an increase of 10.2% in September. Spending on household durables increased 2.2%. Expenditures in textile grew 2.6% in October after 2.9% rise in September. Year-on-year, total consumer spending rose 3.5% annually after a revised increase of 1.1% in September.
The French economy continued to recover in the third quarter. Preliminary estimates showed that gross domestic product expanded 0.3% sequentially in the third quarter, at the same pace it grew in the second quarter.
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