French business confidence rose to a four-month high in July, despite a new flare-up in the U.S.-Israeli war on Iran and record heatwaves at home, a monthly survey showed on Thursday.

Resilient Business Sentiment

The INSEE statistics agency said its business survey improved to 97 points in July, still short of the long-term average of 100, but reaching its highest point since March, just after the Iran war kicked off with U.S. and Israeli strikes.

Confidence was highest in manufacturing, where the index ticked up to 101, up from 100 in June, in line with expectations, as businesses reported stronger output and an improvement in order books despite the conflict-related risks to oil prices and supply chains.

Hotels and restaurants saw a particularly sharp rebound in demand expectations and activity prospects in July, which bodes well for the summer tourism season, despite extreme heat.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.