FILE PHOTO: A vacationer wears a protecting masks as she appears at her cell phone on the Galeries Lafayette division retailer in Paris because the nation is hit by the brand new coronavirus, France, January 30, 2020. REUTERS/Benoit Tessier
PARIS (Reuters) – French enterprise confidence rebounded in August to its highest since France went right into a coronavirus lockdown regardless of a resurgence of recent infections, a survey confirmed on Thursday.
INSEE, the official statistics company, stated its month-to-month enterprise sentiment index rose to 91 from 84, reaching its highest since March, when halfway via the month the federal government put France underneath one of many strictest lockdowns in Europe.
Enterprise confidence has rebounded because the authorities started lifting the lockdown on Could 11 as firms struggled to reply to pent-up demand from shoppers.
INSEE stated that the survey confirmed enterprise’ leaders private outlooks had eased in August regardless of the general enchancment, suggesting that a lot of the restoration in exercise had already run its course.
“The velocity of the catch-up may consequently gradual within the coming months,” INSEE stated in a word accompanying the survey.
The general rebound in enterprise confidence got here as the federal government struggled this month to include a surge in new COVID-19 instances because the French went on summer season vacation.
That has fuelled fears of a second wave of infections heading into the winter, which may derail France’s financial restoration after a file recession within the first half of the 12 months.
In a second quarterly survey, INSEE stated that industrial firms had indicated they meant to chop funding this 12 months by 11%, down from a discount of seven% anticipated the final time the survey was performed, in April.
Reporting by Leigh Thomas, enhancing by Larry King