French business confidence edged slightly higher in February but industry chiefs raised the alarm over a further weakening of their foreign order books, official data showed today.
National statistics body INSEE said its monthly index rose to 103 from 102 in January as business leaders declared they were satisfied with output levels.
The figure was broadly in line with analysts' expectations and maintained confidence at its highest level since May 2001.
But fears the euro's highs against the dollar could stunt a euro zone upturn were reflected as the index component measuring the state of foreign orders fell from minus nine to minus 16.
"The responses given by industry chiefs in the February survey indicate less dynamism in the industrial climate," INSEE said in a statement.
Many fear the rise in the euro, which was trading at around $1.2490 in today's early trade, could hold back a fragile recovery in the euro zone by making its exports more expensive in foreign markets.
