Business climate in France ‘darkened further’ in December

The business climate in France ‘darkened further’ in December, with deterioration seen in every business sector except for manufacturing, where it remains stable, albeit below its long-term average.

According to new data from Insee, the overall business climate indicator stands at 94 for the month, the third month in a row in which it has seen a drop.

Sector by sector

In the services sector, the business indicator stands at 96, continuing its downward trajectory after a three-point decline in November. This was largely driven by more negative forward-looking opinions on demand and activity.

The indicator in the retail trade, meanwhile, stands at 96, which is the third consecutive month of decline, due to less optimistic assessments of the general business outlook and past sales performance.

Within the construction sector, the indicator stands at 98, which is its lowest level since July 2020, and reflects a deterioration across almost all measures, particularly in those related to business activity and employment. In manufacturing, the indicator stands at 97.

As regards the employment climate, the indicator stands at 96, Insee said, a two point decline on November, due to widespread negativity relating to both past and expected employment levels across various sectors.

‘In December 2024, the business climate in France has darkened further,’ Insee said in a statement. ‘At 94, the indicator that synthesises it, calculated from the responses of business managers from the main market sectors, has lost two points. Falling for the third month in a row, it has moved away from its long-term average (100). The business climate has deteriorated in every sector except the manufacturing industry, where it remains stable but still stands below its long-term average.’ Read more here.

Business and employment climates

* including trade and repair of vehicles.
Source: INSEE, business tendency surveys.

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