France’s business sentiment worsens in Dec. ’24

France’s business sentiment continued to deteriorate in December 2024, with the overall indicator dropping two points to 94, marking its third consecutive monthly decline, the French National Institute for Statistics and Economic Studies (INSEE) reported on Thursday.

The indicator now stands significantly below its long-term average of 100.

While manufacturing remained stable at 97, other sectors saw notable declines, with the services sector dropping two points to 96, driven by weaker expectations for demand and activity.

Retail trade fell for the third month, reflecting pessimism in sales and the general business outlook. In construction, the climate indicator hit its lowest point since July 2020, falling to 98 amid concerns over activity and employment.

The employment climate also weakened, dropping two points to 96, as businesses reported declines in both past and future hiring prospects, moving further from its long-term average.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama