By Joshua Kirby
In a promising sign for the eurozone's second-largest economy, French industry displayed an improved level of confidence this month. The national statistics agency Insee conducted a survey that revealed sentiment rose to 100 in December, up from 99 in November. This surpassed economists' expectations, as they had predicted a small decline to 98, according to a poll conducted by The Wall Street Journal.
The key driver of this improved confidence was a more positive outlook on recent developments in industrial production, according to Insee. This is particularly significant as it may indicate a potentially larger contribution from the industry to France's fourth-quarter gross domestic product. Notably, industrial output weakened in the third quarter, leading to a slight contraction in the French economy, as per Insee figures released last month.
While other components of the index remained relatively stable in December, external orders experienced a slight increase.
It is encouraging to see such positive momentum in French industry, as it holds great potential for the overall economic landscape.