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French Oct demand indicator +13 vs +16 in July - Insee UPDATE


Published : Tue, 30 Oct 2007 08:50
By : Agencies
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PARIS (Thomson Financial) - An indicator of demand expectations in French manufacturing industry fell to plus 13 in October from plus 16 in July, according to a quarterly survey of industrialists carried out by the statistics office Insee.

The indicator represents the balance in percentage points between those expecting a rise in overall demand in the current quarter and those predicting a decline.

An indicator of past demand fell to plus 19 in October from plus 22 in the July survey. This represents the balance between those reporting a rise in demand and those reporting a decline in the quarter preceding the survey.

Insee said said overall demand remained strong during the third quarter, although demand from abroad slowed to some extent.

For the fourth quarter, industrialists expect a slight slowing in overall and foreign demand, Insee added.

Prices of industrial goods rose 0.1 pct in the third quarter after a 0.5 pct second-quarter increase, Insee said. Prices are expected to rise by 0.1 pct in the fourth quarter.

Wages rose 0.5 pct in the third quarter after an identical rise in the second quarter, it added.

Production bottlenecks were up 37 pct, while the percentage of respondents reporting cashflow problems was 12 pct.

tfn.paris@thomson.com

gt/jlw/gt/vs

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