The business climate in France‘s retail and motor vehicle repair trade decreased in October 2024, new data from the country’s statistics body, Insee, has found.
The business climate indicator dropped to 99 in October, one point lower than the previous month and below the long-term average of 100.
Workforce changes
According to Insee, this decline was largely driven by a decrease in the outlook for the sector and expectations about future workforce changes.
Specifically, expectations relating to the size of the workforce in the retail trade (excluding motor vehicles) have decreased, while remaining stable for trade and repair of motor vehicles.
The general business outlook has also declined, moving closer to the long-term average, while balances related to past and anticipated sales have decreased, moving further away from their averages. The indicator relating to ordering intentions is stable but remains below its historical average.
Changes in stock levels also played a role in this month’s results, Insee noted. In the retail trade, stock levels are stable but remain above average. In the trade and repair of motor vehicles, stocks have significantly increased, moving well above the average level.
‘Finally, the balance associated with the general business outlook has sharply retreated in trade and repair of motor vehicles, where it has moved below its average, whereas in retail trade, it has retreated more moderately and has moved closer to its own,’ Insee noted.
Sales expectations
A breakdown of the data by sub-sector shows mixed results. In the retail trade, recent sales and expected sales indicators have both declined. In terms of the trade and repair of motor vehicles, recent and expected sales indicators showed a slight recovery. However, ordering intentions for both sub-sectors have remained below historical norms.
The entire sector that comprises the retail trade and trade and repair of motor vehicles is composed of 66% retail trade and for 34% trade and repair of motor vehicles. Read more here.
