Investing.com -- French manufacturers are starting the new year with a decrease in confidence, impacted by both global economic uncertainty and political instability at home.
According to the country's statistics agency, Insee, the monthly index of manufacturer confidence dropped to 95 in January, down from 97 in December. This brings it further below the long-term average sentiment, which is indicated by a reading of 100.
In the previous year, industry confidence had momentarily risen above this point, as the inflation crisis from past years eased. However, maintaining this rebound has proven challenging.
High interest rates and global political unrest have negatively affected confidence. Adding to this, the political situation in France has become uncertain after President Emmanuel Macron lost control of the National Assembly in snap summer elections.
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