All about business

French manufacturing confidence slumped in September to the lowest in 15 years as new orders dropped “markedly'' and the economy probably fell into a recession, the Bank of France said.

The Paris-based central bank said its index of manufacturing confidence fell to 87 from 94 in August, the lowest reading since the same month in 1993. Economists expected the index to fall to 92, according to the median of 4 forecasts in a Bloomberg News survey.

“Industrial activity recorded a significant decline in September,'' the French central bank said in its monthly business survey. “Activity is expected to continue to decline in the short term.''

Euro-zone nations will expand little next year as the global credit crunch saps corporate investment and consumer spending, the International Monetary Fund predicted this month cheap payday advance. European benchmark stock indexes tumbled 22 percent last week, the steepest slide in two decades as bank lending seized up leaving companies scrambling for cash.

Gross domestic product probably shrank 0.1 percent in the third quarter, the Bank of France said, revising last month's forecast for a 0.1 percent GDP increase in the period. The French economy contracted 0.3 percent in the second quarter.

In another sign that French growth is slowing inflation in September slowed more than economists expected to 3.3 percent, from 3.5 percent in August, a separate report showed today.

Retail sales rose 1.8 percent in September from August, when they dropped 1.4 percent, the Bank of France also said.

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