30 October 2006, 11:26  French October demand indicator +12 vs +10 in July

An indicator of demand expectations in French manufacturing industry rose to +12 in October from +10 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 rose to +17 from +13 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 demand should continue to post "sustained growth" in the fourth quarter, mainly from foreign companies. Prices of industrial goods rose 0.6 pct in the third quarter after a 0.4 pct second quarter increase, Insee said. Prices are expected to rise by 0.5 pct in the fourth quarter Wages growth was stable in the third quarter compared to the previous quarter at 0.5 pct. The indicator for future wage growth fell to -30 from -23 in the July survey. Production bottlenecks were down to 28 pct (percentage of respondents reporting production problems) from 32 pct in July, while the percentage of respondents reporting cashflow problems was stable at 12 pct.

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