51,000 businesses started in June

MORE THAN 51,000 new businesses were created in June – marking a massive increase in new starts since the creation of the auto-entrepreneur status in January.

That is a 5.8% increase over May, which had seen a slight slow-down in the rate of business growth.

National statistics body Insee said that new business activity in the first half of this year had doubled since last December when around 25,000 new businesses were started.

The last three months has seen a 76% increase in new starts over the same period last year – and nearly 340,000 businesses have been started over the 12 months.

Business Minister Hervé Novelli said there had been 182,000 auto-enterprises created: nearly double the number expected. The new status allows any worker, unemployed, retired or student to set up a simplified form of business to help boost their income.

Construction and service industries have been the main sources for new business but over past year 61% of the new businesses created have been in information technology and communications.

Economy Minister Christine Lagarde said consumer spending was also better than expected in June. Speaking in advance of the publication of official figures from Insee, she said there were encouraging signs in the economy – both in France and worldwide.

"In France, in May we had industrial production which rebounded. We have an auto sector which is holding up," she said on France 2 television.

"We are going to have consumption for June clearly better than expected...after a slight rise in consumption in the first quarter we are going to have an improvement in consumption in the second quarter."