Economy
French business climate edges up to 97 in October as manufacturing improves
France's business climate indicator rose one point to 97 in October, INSEE said, as manufacturing gained while retail trade and hiring expectations weakened.
Key points
- The all-sector business climate indicator rose one point to 97, still below its long-term average of 100.
- Manufacturing climbed four points to 105, while retail trade fell three points to 93.
- The employment climate dropped three points to 95.
Business sentiment in France improved slightly in October, the national statistics office INSEE reported on October 22. The composite business climate indicator, calculated from business leaders' answers across the main market sectors, rose by one point to 97. It remains below its long-term average of 100.
Manufacturing led the increase. The sector's indicator rose four points to 105, above its long-term average. The services indicator gained one point to 99.
Other sectors weakened, so two of the four main sectors improved in October and two declined. The indicator for retail trade, including vehicle trade, fell three points to 93, the weakest of the four sector readings, and the building construction indicator slipped one point to 95. INSEE revised its September retail trade figure up by two points because of late responses, while the composite indicator for September was unchanged after rounding.
The employment climate deteriorated. Its indicator fell three points to 95, below its long-term average, mainly reflecting a decline in the workforce size that service companies, excluding temporary work agencies, expect over the coming months.
The survey responses were collected between September 25 and October 19. France is the euro area's second-largest economy, and business surveys are among the indicators the European Central Bank follows when it assesses growth in the region. INSEE will publish its next business climate survey on November 20.
