The business climate in France deteriorated in November 2024, according to national statistics body Insee, with the composite indicator dropping one point to 96, based on responses from business managers across key market sectors.
While the business climate in the manufacturing industry saw a partial rebound, gaining four points to reach 97 after a six-point drop in October, it remains below its long-term average for the seventh consecutive month.
As Insee noted, the rebound in the manufacturing sector was driven by improvements in outlook, rather than general production prospects.
Services, wholesale and retail
The business climate in the services sector reported a decline in November, with its indicator falling to 99 due to weaker expectations for activity and demand.
In the wholesale trade, the business climate indicator reported a two-point drop compared to September, and remains below the long-term average, a position it has held for the past two years.
In the retail trade, meanwhile (including vehicle trade and repair), the business climate indicator experienced a slight decline, primarily attributed to reduced ordering intentions and workforce expectations.
The building construction sector also ‘darkened’ in the month, Insee said, seeing its indicator fall by one point to 99, reflecting a downturn in opinions on past demand.
Employment climate improves
At the same time, however the employment climate in France improved, with its indicator rising by two points to 99 in November, approaching its long-term average.
This improvement was largely driven by positive shifts in balances of opinion regarding past workforce size, particularly in the services sector, and, to a lesser extent, in manufacturing.
Insee noted that the business climate for October 2024 in the manufacturing industry was revised upwards by one point (after rounding), mainly due to the inclusion of late responses from companies.
Data collection for Insee’s November indicators occurred between October 28 and November 18, 2024, with most responses received in the first half of the collection period. Read more here.
