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French Business Confidence Drops as Euro-Region Slipped into Recession
Tuesday, 25 November 2008 07:44:09 GMT  |  DailyFX Research
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French November business confidence declined to 80 from 87 with companies increasingly pessimistic about past production, orders inflow and the future production outlook. The reading for foreign orders inflow slumped to -46 from -26 which suggest that the global slowdown is increasingly having an impact. Numbers suggest that France, which so far has escaped a technical recession, is contracting in Q4. And with price data coming off too, data will add to arguments for a bold rate cut from the ECB at the December council meeting.
In addition, French housing starts fell 20.6% in the three months to October, which is acceleration in the rate of decline compared to the drop of 14.3% y/y in the last 12 months. Housing permits were down 24.4% y/y in the three months to October and down 19.5% y/y in the previous twelve months. The drop in housing starts affects ordinary housing as well as hotels and hostels, while housing permits for hotels and hostels are still rising.

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