Dutch International: Decline in French business confidence impacts growth prospects.

Charlotte de Montpellier of the Dutch International Group stated in a report that the business climate in France continued to deteriorate in February, weakening growth prospects. The index dropped by two points to 97. Montpellier said that the sentiment in all subsectors of the service industry declined, while expectations for future prospects and demand also slowed significantly. Companies also expect recruitment activities to weaken. The industrial sector is facing a situation of declining orders and production prospects. The analyst said: "Despite initial signs of industrial recovery in Europe, especially with the support of Germany's stimulus plan, the French economy does not seem to be accelerating growth, and domestic demand also shows signs of fatigue." French industry is expected to benefit from Germany's stimulus measures, while wage increases should support consumer spending. However, she noted that political and fiscal risks remain high.