French Business Confidence Unexpectedly Rises in October, Manufacturing Hits Multi-Year High

• French business confidence rose to 97 in October, beating expectations.
• Manufacturing confidence hit 105, highest since July 2022.
• Overall confidence remains below 100 average; outlook clouded by unrest and rates.

French business confidence unexpectedly improved in October, with the overall index rising to 97, surpassing the anticipated 96. This uptick was notably driven by the manufacturing sector, where confidence climbed to 105 from 101, marking its highest level since July 2022 and exceeding forecasts for an unchanged reading. Services confidence also saw a modest increase to 99 from 98. Despite these gains, the aggregate business climate remains below its long-term average of 100, and retail trade confidence declined by 3 points. Analysts note that the survey does not yet reflect the full impact of recent social unrest, and the outlook remains clouded by higher interest rates, a weak labor market, and deteriorating public finances.