Summary

• Business confidence in France edged up only marginally in June, rising by a single point to 94, still well below its long-term average.
• PMI indicators, also released today, did improve in June but remain weak overall and still point to contracting activity, albeit at a slower pace than in May.
• In short, prospects for a rebound in French activity remain very limited, and the end of the Middle East conflict does not mark the beginning of a strong recovery.

By Charlotte de Montpellier, Senior Economist, France and Switzerland

Business sentiment stayed subdued in June and domestic demand continues to underperform, pointing to weak economic activity in the months ahead

French domestic demand