The French economy continues to underperform its markers:

The national statistics bureau INSEE [Institut National de la Statistique et des Etudes Economiques] said its index of business confidence in November fell to a reading of 105 from 107 in October while household sentiment dropped sharply to minus 23 from minus 19.

At the same time the country's persistently high jobless rate was unchanged at 9.9 percent of the workforce in October from September.

[Incoming Finance Minister Hervé] Gaymard insisted in his first comments as finance minister that official targets for French growth of 2.5 percent this year and 2.0 percent in 2005 remained credible. ...without offering further comment.

Private economists however are far from sanguine about France's near-term prospects.

"The future does not bode particularly well," said Marc Touati*, an analyst with Natexis Banques Populaires, noting that while French households will continue to consume they will do so "but in small steps."

Touati said the weakening in French business sector sentiment reflected "a general collapse in production prospects, which went from plus 23 to six."

"The last time there was such a slide was in April 2001 and before that in November 1976."

Emmanuel Ferry of Exane BNP Paribas warned meanwhile that the latest data from INSEE points to a "relatively mediocre" first half next year for France.

* M. Touati has a few words for Euro crybabies:

What to do? Once again, wait on the goodwill of Americans. ... Why? Mainly because they have an economy structurally more dynamic than ours and political institutions and monetarists much more credible and effective than ours.

So let's stop weeping for the strong euro, as we wept about the weak euro. We only have what we deserve. To remedy this situation, we need more constant growth, a more rational and pragmatic BCE [European Central Bank], and a more committed and willing political union. To realize these very objectives is why we created the euro. Sadly, the recent experience shows we are still incapable. Perhaps because we have neither the courage for it nor the will. There's little left but to hope that one day we will manage it. Hope springs eternal...

[Emphases added.]

Since our froggies won't say it, I will. People have been saying stuff like this about France for decades, yet somehow they muddle through. I think Bush's calling of Europe's bluff on the value of the Euro might be a new aspect to this game, however. As is his more aggressive actions against French client states.

For now though, I can't blame the French for shrugging their shoulders in that manner that gave them the nickname of 'Frog' and saying "Plus ca change..."

index of business confidence in November fell to a reading of 105 from 107 in October while household sentiment dropped sharply to minus 23 from minus 19

What does this mean? French people are 4 points less sentimental? I have no frame of reference to tell if 105 is a good, bad, or indifferent, business confidence.

Papertiger :

Don't bother with that kind of stuff, futile economic speechs.

Everything against our stupid conservative administration is good, for sure in 2007, the whole country will enjoy the victory of the socialists. I can't wait for that day.

PT,

I am not an economist and the numbers are as reported in the original AFP story (which by the way is now linked).

I was able to cite the unemployment report, but was unable to locate the two lead INSEE reports. If they are on the INSEE site they must have titles in French that I simply don't recognize. I have no French.

Anyway, an index of business confidence is usually a survey of business leaders asking a variety of questions to gauge current and future investment. The higher the index number the greater the confidence, though what the French baseline number is I haven't been able to suss out.

I surmise that "household sentiment" is the French equivalent of our "consumer confidence" report. This report forecasts consumer spending and credit habits based on current trends and survey response commentary. Again the higher the number, the greater the confidence. One can infer from the minus French ratings that the baseline is zero. This number is good or bad in the larger context of an economy's circumstances. In France's case, because of its obdurate unemployment rate and sluggish economy the minus rating is bad news.

I should probably give up these economic posts as I have only a layman's grasp and no one much cares about the flagging French socialist paradise.

Regards,
DGB

"Everything against our [country] stupid conservative administration is good, for sure in 2007, the whole country will enjoy the victory of the socialists. I can't wait for that day."

Neither can we. I think that if you guys would just kick our Chirac and crawl back into the hole you came out of, the world would be a better place.

France, Spain, and Germany, with Russia thrown in for some military might. The axis will rise again.

brb, you're an idiot

très bien dit "Stéphane". Bienvenue aux "blog des américains betes".

Je t'assure il y a des américains qui ne pensent pas comme ces gen ici.. heureusement.

[M. Richard writes: Well said, "Stéphane". Welcome to the "blog of American brutes". I assure you there are Americans who don't think like these folks here. Fortunately.]

[M. Richard,

Please note that this is an English language blog. You seem to have a rudimentary grasp of English based on your above post, so please post accordingly. It's also nice if you post something intelligent.

Future all-French posts will be deleted not translated.

The Management]