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After being almost stable since August 2015, the French business climate indicator gained three points to show marked improvement in December 2016.
Data released by the French statistical agency, National Institute of Statistics and Economic Studies (INSEE) on Friday showed that France Business Climate index came in at 106, above forecasts for a reading of 103 in December.
The index stands five points above its long term mean, reaching its highest level since the summer 2011. Details of the report showed the climate has gained four points in services as in manufacturing, and three points in retail trade. However, it has lost one point in building construction.
The INSEE in its economic outlook released on Thursday said that steady uptick in French economic growth at the end of the year and the start of 2017 will be tested by political uncertainties.
"For the moment, these uncertainties do not seem to be affecting the business climate, but depending on how they evolve, they could increase the wait-and-see attitude among investors,” Insee said.
