French Manufacturers See Decreased Confidence in 2023

French manufacturers are starting the new year with decreased confidence, influenced by global economic uncertainty and domestic political instability.

According to France’s statistics agency, Insee, the monthly index of manufacturer confidence declined to 95 in January, down from 97 in December. This reading is well below the long-term average sentiment, represented by a figure of 100.

In the previous year, industry confidence had temporarily risen above the average as the inflation crisis from prior years abated. However, sustaining this rebound has proven difficult.

High interest rates and global political unrest have adversely impacted confidence levels. Additionally, uncertainty has grown in the political arena in France following President Emmanuel Macron’s loss of control over the National Assembly during snap summer elections.

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