We continue to monitor order trends. Trends for France are still higher over 12 months at +6.4%. Foreign orders are a half step behind at +5.5%. But over six months the growth rate is lower and over three months the growth rate is negative for both overall and foreign orders. Total and foreign orders are lower in two of the most recent three months.

The French economy has been losing momentum and now it is beset with strikes. These are in sharp contrast with the post election enthusiasm that kept sentiment strong well after the elections. The prospect of change was invigorating; the reality of what it will really mean appears to be disappointing. That swing from euphoria to worker strikes could do damage to the economy. The strong Euro has played a role in the slowing of the economy as well as throughout the Euro area. Sarkozy has his work cut out for him.