French business morale improves

French business morale improved unexpectedly in February amid a pick-up in foreign orders and demand, official data showed today…

French business morale improved unexpectedly in February amid a pick-up in foreign orders and demand, official data showed today.

National statistics office INSEE said its business climate index rose to 107 in February from 106 the month before.

"Overall and foreign order books are filling up again and are considered to be well-stocked," INSEE said in a note accompanying the data.

"The personal business outlook is falling back but remains favourable. The general business outlook is stable."

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The optimistic business morale figures came after recent data showed that a surge in exports helped boost French growth in the fourth quarter of last year. The euro zone's second-largest economy grew 0.6 per cent in the final three months of 2006.