French July business sentiment to continue trend of improvement

The Bank of France Business Sentiment indicator for the manufacturing sector is likely to increase from 98 to 99 in July. This follows the improvement in the (INSEE) manufacturing confidence survey in the same period. 

The business sentiment continues to be supported by a structurally lower oil price, a weaker euro and improved credit channels. In particular, the oil price fell in July after increasing for four months in a row.

"Going forward, business sentiment is expected to steadily improve. However, the uncertainty from Greece is likely to cap any substantial improvement. The current level is just below the historical average of 100", says Societe Generale.