France July business confidence rises to 97, beating 95 forecast

France's business confidence index rose to 97 in July, above the 95 forecast and the June reading of 96, the Insee survey showed. The index is now two points closer to the long-term average of 100, a level it last touched in May 2024.

The improvement was broad-based. The manufacturing and services sectors both reported better sentiment, and retail trade also picked up. The report follows a rebound in June after a soft patch in the spring.

Energy costs remain a concern. French electricity prices have risen in recent weeks, and shipping disruptions in the Red Sea are adding to supply-chain costs. The index has not reached 100 in over a year, and the next Insee release is scheduled for August.

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