PARIS (Reuters) - French industrial morale dipped in April, reflecting concerns elsewhere in the euro zone that growth in the bloc is weakening as the impact of a stronger currency starts to bite.
Data from the INSEE national statistics body on Tuesday showed that industrial morale in France, the euro zone’s second-biggest economy, fell to 109 points in April, down from a revised figure of 110 points for March.
A Reuters poll of 18 economists had given an average forecast of 110 points.
“There’s definitely a slowdown, and the euro is not helping. The European Central Bank is stuck in a corner. If they look to normalise rates, the euro will just shoot up and they’re finding it hard to successfully talk down the euro,” said Ion-Marc Valahu, fund manager at Geneva-based firm Clairinvest.
The French survey echoed a similar finding in Germany, Europe’s biggest economy, with data on Tuesday also showing that German business confidence had deteriorated for a fifth consecutive month in April.
French industrial morale has edged lower after hitting a 17-year high in January.
Economic and business morale have hit multi-year highs since President Emmanuel Macron's election last year, but analysts warn that a strong euro EUR= is making it harder for European firms to sell their goods overseas.
French tyre maker Michelin (MICP.PA) said this week that the strong euro had contributed to a decline in its revenues during the first quarter of this year. Its shares fell by more than 1 percent on Tuesday.
For details from INSEE: here
For a graphic: reut.rs/2DErm7G
Reporting by Sudip Kar-Gupta; Editing by Richard Lough and Peter Graff