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French Business Confidence Rises From Three-Year Low on Tax Cut

French industrial confidence climbed from the lowest in more than three years after President Francois Hollande unveiled a payroll tax cut for businesses that will go into effect next year.

Sentiment among factory executives rose to 88 in November after falling to 85 in October, national statistics office Insee in Paris said in a statement today. Economists had expected a reading of 87, according to the median of 19 forecasts gathered by Bloomberg News.

Hollande this month announced a 20 billion-euro ($25.8 billion) tax credit for businesses, and plans to reduce government spending by 60 billion euros over five years in an attempt to turn around an economy that has barely grown in more than a year.

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