By Mark Deen
July 23 (Bloomberg) -- French business confidence climbed for a fourth month as demand for clothes and household goods picked up, helping counter the country’s worst recession since World War II.
An index of sentiment among 4,000 manufacturers rose to 78, from a revised 76 in June, Paris-based statistics office Insee said today. That compares with a median forecast of 77 in a survey of 22 economists by Bloomberg News.
The climb from a record-low of 69 in March highlights the impact of President Nicolas Sarkozy’s efforts to support businesses and consumers with tax cuts, loans and investment. While consumer spending rose 1.4 percent in June, growing unemployment may restrain demand later this year
“The good spending figures should be helping business for now,” said Amelie de Montchalin, an economist at Exane BNP Paribas in Paris. “Yet much of this relates to temporary support and the stabilization we’re seeing now in the economy may not last.”
Sarkozy has promised about 30 billion euros ($42.7 billion) in fiscal stimulus, including incentives to buy new cars.
French manufacturers’ overall production held at minus 40 for a second month, Insee said. Their view on pending orders was also virtually unchanged, with that measure climbing to minus 68 from minus 69 a month before.
To contact the reporters on this story: Mark Deen in Paris at markdeen@bloomberg.net
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