French business sentiment rose to a five-year high in April, official statistics agency Insee said today.
Insee's main business confidence index rose to 108 points in April from 106 in March, the agency said, in a sign that the government's two-month standoff against student groups and trade unions over labour reforms did not dampen entrepreneurial morale.
The crisis ended when the government announced it was scrapping the controversial measure that would have made it easier to fire young workers in their first two years on the job.
Economists had expected business confidence to remain stable at 106 points.
The optimism was boosted by robust domestic demand and strong overseas orders, Insee said. The foreign demand sub-index rose to six points in April from four in March.
The past-production sub-index - used by many economists to forecast industrial output - jumped to 18 points in April from eight points in March.
The depressed mood prevailing in France's large auto sector weighed on the overall index, Insee said, because of weak domestic demand and exports.
AP