France’s business climate deteriorates in Nov. ’24

France’s business climate indicator fell by one point to 96 in November 2024, reflecting a darkening outlook across most sectors.

The manufacturing industry saw a partial rebound, with its indicator rising by four points to 97, although it remains below its long-term average for the seventh consecutive month.

This rebound was driven by improvements in all opinion balances except general production prospects.

The services sector experienced a decline, with its business climate indicator dropping to 99 due to lower expected activity and demand.

In wholesale trade, the bimonthly business climate indicator fell by two points compared to September, remaining below its long-term average for the past two years.

Retail trade, including vehicle trade and repair, also saw a slight decline, primarily due to reduced ordering intentions and expected workforce size.

In building construction, the business climate indicator dropped to 99, falling back to its long-term average, mainly due to a decline in opinions on past demand.

On a positive note, the employment climate indicator rebounded in November 2024, rising by two points to 99, moving closer to its long-term average.

This improvement was driven by increased balances of opinion regarding past workforce size in services, including temporary work agencies, and to a lesser extent, in the manufacturing industry.

Attribution: Insee

Subediting: M. S. Salama