France: The cyclical situation is in reality very good

There are grounds to be concerned about France’s structural disadvantages (weak corporate modernisation, deindustrialisation, low level of labour force skills, etc.), but even though there is a sentiment of economic crisis in public opinion, France’s cyclical situation is very good: Strong job creation and falling unemployment rate; Rising household confidence; Very strong outlook for corporate investment; Strong growth in real household disposable income. The perception of this good cyclical situation will probably improve. The risk is obviously that it may not last because of the structural disadvantages, unless they are corrected.