French industrial confidence remained near its lowest in two years in August, increasing pressure on President Francois Hollande’s government to revive growth in the face of Europe’s debt crisis.
Sentiment among factory executives rose to 90 after July’s reading was revised down to 89, national statistics office Insee in Paris said in a statement today. That’s in line with the median of 20 forecasts in a Bloomberg News survey. A gauge that includes retailers, builders and service industries was unchanged at 87, the lowest in almost three years. — Bloomberg
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Continued news of this shade will intensify the developing rift between periphery nations, lead by France and core nations such as Germany, Finland, and the Netherlands.
Hollande will come under increasing pressure to call for ECB assistance, but likely as a prerequisite for greater integration. Germany, on the other hand, wants integration and ceding of sovereignty before the monetary spigot gets turned on.