2010.09.0805:22:00UTC+00French Manufacturing Confidence Remains Stable

Sentiment among French manufacturers was unchanged for the third straight month in August, a new survey showed on Wednesday, suggesting the industrial sector has stagnated.

The Bank of France said the business sentiment index among manufacturers was at 101, the same as in July. Economists had forecast the indicator to remain at 101.

The central bank said rising sentiment in most sectors was offset by a decline in the auto industry. Industrial capacity utilization dipped during the month.

On the other hand, order books picked up slightly, while businesses expect a rebound in production in the months ahead despite gloomy conditions.

Meanwhile, sentiment in the service sector edged down for the second month running. The index came in at 95, down from 96 in the previous month.

Despite the fall in sentiment, staff levels in the service industry continued to rise at the same pace as in July, while the outlook for activity increased slightly.

French businesses expect gross domestic product to increase by 0.3% in third quarter, following the 0.6% rise in the second quarter.

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