PARIS: Executives at French manufacturers plan to hold off on increasing investment next year after three consecutive years of higher spending, a survey showed on Tuesday, hindering the government’s hopes for a strengthening recovery.
Economists consider the survey by the INSEE statistics office a bellwether of corporate investment intentions. It is closely watched by the government, which is banking on a turnaround in business investment to fuel a recovery in the eurozone’s second-biggest economy.
In their first assessment of next year’s plans, manufacturers polled in October said they intended to leave spending in 2017 at the same level as this year, dragged down by gloomy expectations in the transport sector.
That would mark a significant slowdown from the 5 per cent increase manufacturers expect for this year. The estimate had itself been lowered from 6 per cent the last time the survey was conducted in August.
