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French December business morale hits survey low

Published 12/19/2008, 03:05 AM
Updated 12/19/2008, 03:10 AM

PARIS, Dec 19 (Reuters) - French business sentiment in December fell to its lowest level since June 1993, the lowest point reached in the history of a survey started over 32 years ago, data showed on Friday.

Statistics office INSEE's business confidence index fell to 73 in December from a downwardly revised 79 in November, undercutting economists forecasts for a smaller drop to 78. November's figure was initially reported at 80.

"According to business chiefs surveyed in December, the industrial situation has clearly worsened again," INSEE said in a statement.

"The general business outlook, which represents the opinion of business chiefs on overall industrial activity, continues to worsen and remains below its historic minimum," it said.

Opinions on past manufacturing activity declined noticeably, stocks of finished products continued to mount and were judged well above long term average levels, INSEE said.

Order books, both in overall terms and for export were emptying and were considered very thin, it said, adding that business leaders expected to hold back prices in coming months. (Reporting by Brian Rohan, editing by Mike Peacock)

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