PARIS, June 26 - French business morale slid in June to its lowest level since November 2001, disappointing market expectations, as the strong euro caused industry leaders to fret over future foreign orders, data showed on Thursday. National statistics office INSEE said its catch-all composite business climate index, based on a survey of around 4,500 business leaders, fell to 90 in June versus a revised 92 in May, well below peaks of over 120 in the same period of 2000. The May headline figure was revised down from 93 initially, and the June headline figure compared poorly with a consensus forecast of 94 from economists polled by . The "general outlook" part of the index, measuring companies' expectations for the future, was unchanged from May at minus 32, still an improvement on the minus 58 recorded in April, the lowest level since the index began in 1976. "Responses from industry chiefs show that the business cycle is still depressed," INSEE said in a statement.
The survey's outlook on foreign orders plunged to minus 37 from minus 28 in May, and the personal production outlook slipped to minus 11 from minus seven. The figures disappointed economists after the latest data from other euro zone countries showed improved business morale.//