April 24, 2018 / 8:50 AM / a month ago

UPDATE 1-French industry morale edges lower in April, euro weighs

* Industrial morale falls for fifth straight month

* French survey echoes similar data in Germany

* Signs that euro zone’s growth cycle is weakening (Adds detail, fund manager comment)

By Sudip Kar-Gupta

PARIS, April 24 (Reuters) - French industrial morale dipped in April, reflecting concerns elsewhere in the euro zone that growth in the bloc is weakening as the impact of a stronger currency starts to bite.

Data from the INSEE national statistics body on Tuesday showed that industrial morale in France, the euro zone’s second-biggest economy, fell to 109 points in April, down from a revised figure of 110 points for March.

A Reuters poll of 18 economists had given an average forecast of 110 points.

“There’s definitely a slowdown, and the euro is not helping. The European Central Bank is stuck in a corner. If they look to normalise rates, the euro will just shoot up and they’re finding it hard to successfully talk down the euro,” said Ion-Marc Valahu, fund manager at Geneva-based firm Clairinvest.

The French survey echoed a similar finding in Germany, Europe’s biggest economy, with data on Tuesday also showing that German business confidence had deteriorated for a fifth consecutive month in April.

French industrial morale has edged lower after hitting a 17-year high in January.

Economic and business morale have hit multi-year highs since President Emmanuel Macron’s election last year, but analysts warn that a strong euro is making it harder for European firms to sell their goods overseas.

French tyre maker Michelin said this week that the strong euro had contributed to a decline in its revenues during the first quarter of this year. Its shares fell by more than 1 percent on Tuesday.

For details from INSEE: here

For a graphic: reut.rs/2DErm7G (Reporting by Sudip Kar-Gupta Editing by Richard Lough and Peter Graff)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below