French manufacturing industry demand will rise in the fourth quarter to its highest level since April 2000, an official survey showed today.
In its quarterly business survey, national statistics office INSEE said prospects for overall demand in the coming quarter rose to plus 17 from plus 9 in July. For the manufacturing sector, a similar index rose to plus 19 from plus 9 in July.
A positive figure represents the balance between the percentage of respondents saying things had improved and those saying things had got worse.
"Overall demand declined slightly in the third quarter of 2004," INSEE said the survey showed. "Overall demand will accelerate in the fourth quarter."
The upbeat outlook backed up the positive tone of a report from the International Monetary Fund (IMF) yesterday, which said French growth is on track to average an annual rate of about 2.5 per cent this year and next.
The readout came ahead of a European Central Bank policy meeting later today. ECB watchers expect the bank to keep its key interest rate at 2 per cent, with rising inflation and shaky growth in the overall euro zone holding it in a vice.
A batch of companies in France also posted upbeat earnings reports today, reinforcing the positive economic picture in the euro zone's second biggest economy.
Bank BNP Paribas reported a higher third-quarter net profit, and European aerospace giant EADS posted higher-than-expected nine-month earnings.