France has reported an improvement in its business climate for three months in a row, with the business climate indicator rising one point to 98 in August, according to new data from Insee.
While the indicator remains below its long-term average of 100, it has edged close to that level every month since May.
As the data showed, the improvement was recorded across the retail trade, manufacturing and services, while the business climate in construction was unchanged. The employment climate indicator remained stable at 99.
Retail leads the way
Retail trade, including repair of motor vehicles, recorded the largest monthly increase, with its business climate indicator rising three points to 99. This was boosted by higher balances of opinion relating to ordering intentions and past sales, Insee noted.
Manufacturing also improved, with its indicator increasing two points to 103, moving further above its long-term average. Insee said the increase was mainly explained by a rise in manufacturers’ expectations for their own production prospects.
The services business climate indicator increased one point to 100, reaching its long-term average. The improvement marked the third consecutive monthly increase and reflected higher balances relating to past and expected activity and expected demand.
Construction was the only major sector where the business climate did not improve, with the indicator remaining at 96, below the long-term average. Business leaders’ expectations for future activity rebounded, while opinions on past activity remained unchanged.
Business climate indicator
The overall business climate indicator rose from 94 in April and May to 98 in August. Manufacturing increased from 100 in April to 103 in August, while services rose from 96 to 100 over the same period. Retail trade improved from 93 in April to 99 in August, although the indicator had fallen to 89 in May.
The employment climate remained at 99 in August, unchanged from July but below its April level of 100.
Responses for the August survey were collected between 27 July and 18 August, Insee noted. Read more here.
France Business and Employment Climates
| Indicator | Apr-26 | May-26 | Jun-26 | Jul-26 | Aug-26 |
|---|---|---|---|---|---|
| Business climates | |||||
| France | 94 | 94 | 95 | 97 | 98 |
| Manufacturing industry | 100 | 102 | 100 | 101 | 103 |
| Building construction | 96 | 96 | 95 | 96 | 96 |
| Services | 96 | 95 | 96 | 99 | 100 |
| Retail trade* | 93 | 89 | 91 | 96 | 99 |
| Wholesale trade | 97 | 95 | |||
| Employment | 100 | 95 | 98 | 99 | 99 |
* Including trade and repair of vehicles.
Source: INSEE, business tendency surveys.
