French businesses more optimistic

French business confidence unexpectedly improved in June as a weak euro boosted optimism about exports.

Statistical office Insee said its business climate index rose to 99 from 97 in May, topping analyst forecasts.

The figures come a day after data showed that German firms are also more optimistic about their outlook.

The euro has declined by more than 10% against the US dollar since the start of the year, falling from record levels that had deterred many buyers.

'Fragile'
Even so, analysts said a long-lasting recovery in two of Europe's main economies remained uncertain, underlining recent calls for interest rate cuts.

France's government has cut its own growth forecast for the year to 2% from 2.5%, and some analysts are saying that even that figure is too optimistic.

Separate reports from Germany and Italy on Tuesday showed just how contradictory economic data from the eurozone has become.
According to German research group GfK, the country's consumer sentiment is set to worsen significantly in July ahead of a general election later this year.

Meanwhile, in Italy business confidence fell for a fifth month in June, sliding to its lowest level since November 2001.

"The economic situation still remains fragile," said Emmanuel Ferry of Exane.