Managers of French companies predict a significant increase in investment

Managers have improved their forecast for 2021 by six points.

Managers of French companies predict a significant increase in capital expenditures this year. This was shown by a survey by the statistical office INSEE. According to the survey, managers predict that capital expenditures will increase by 10% this year after falling by 13% in 2020. Managers have improved their forecast for 2021 by 6 points. They also expect the recovery in investment to be very strong in the electrical, electronic and mechanical engineering sectors, while investment growth will be more modest in the manufacture of transport equipment, by around 3%. Among the survey respondents, more of them expect growth rather than a decline in investment in the first half of 2021. The relevant indicator of expected investments in the current half-year has recovered and rose to 14 points, which is a significant jump compared to 3 points in July last year and its highest level since 2011.