French Business and Consumer Sentiment Fails to Impress the EUR

Economic data from the Eurozone was on the busier side this morning with business and consumer sentiment figures from France in focus.

The Stats

The Business Climate Survey Indicator for Manufacturing rose from 104 to 107 in May. Economists had forecast an increase to 106.0.

According to Insee.Fr,

• The increase was attributed to a rise in the balances of opinion on production prospects and order books.
• Across the services sector, the business climate index climbed from 92 to 107.
• For the retail sector, the climb was a more impressive 17 points to 107. The jump was driven by sentiment towards the near future, likely to be due to the reopening of the economy.
• Employment conditions also improved, with the employment climate rising from 92 to 100.

Consumer confidence also improved, with the consumer confidence indicator rising from 95 to 97 in May. Economists had forecast an increase to 97.

According to Insee.Fr,

• Household confidence in the economic situation remained below its long-term average of 100.
• In relation to their future financial situation, the households’ opinion balance rose by 3 points to go above its long run average.
• The share of households considering it a suitable time to make major purchases remained steady and held above its long-term average.
• In relation to households, considering it to be a suitable time to save, the share declined after having hit an all-time high in April.

Market Impact

Ahead of the numbers the EUR had risen to a pre-stat and current day high $1.22629.

In response to today’s stats, the EUR rose to a post-stat high $1.22520 before falling to a post-stat and current day low $1.22336.

At the time of writing, the EUR was down by 0.10% to $1.22383.