Sharp improvement in French business confidence in December

Business confidence in France improved sharply in December, led by improved sentiment in industry and services.

INSEE's French business confidence index rose from 102.0 to 105.0, with a gauge tracking industrial confidence rising from 102.0 to 106.0, while another sub-index tracking confidence levels among service sector outfits increased from 102.0 to 106.0.

Economists had penciled in a print of 103.0.

Confidence dipped among construction sector executives, with that subindex slipping from 99.0 to 98.0.

Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics highlighted the jump seen in subindices for "expected demand" and "expected activity" in services.

"Overall, these are strong data and suggest that industrial production in France will pick up soon," Vistesen said.