The business climate in France remained stable in June 2023, according to the latest indicator. The indicator, calculated from the responses of business leaders in the main market sectors, remained at its long-term average of 100. This stability is the result of mixed developments in different sectors.
In the industry sector, the business climate rebounded slightly and went back to just above its long-term average. This improvement was driven by a positive balance of opinion on production and overall order books. Similarly, the business climate in retail trade also improved, thanks to a rebound in the balance of opinion on order intentions.
On the other hand, the business climate in the construction sector continued to deteriorate. The balances of opinion relating to activity in this sector continued to decline, indicating a gloomy outlook.
In the services sector, the business climate indicator remained stable, slightly above its long-term average. However, there was a deterioration in the balance of opinion relating to the future development of the workforce in services, offsetting the improvement in recent development in this sector and in retail trade.
In terms of employment, the synthetic employment climate indicator remained stable compared to May. At 105, it remained above its long-term average of 100. This stability in June was the result of modest but contrasting developments. The balance of opinion relating to the future development of the workforce in services (excluding temporary work agencies) deteriorated, while there was an improvement in recent development in the same sector and in retail trade.
Overall, the business climate in France remained stable in June, with improvements in industry and retail trade offsetting the decline in construction. The employment climate also remained stable, with mixed developments in different sectors.
Source: AOF
How did the business climate indicator in the services sector in France in June 2023 compare to its long-term average, and what specific aspect showed a slight deterioration
The business climate in France held steady in June 2023, according to the latest indicator. Calculated from the responses of business leaders in various sectors, the indicator remained at its long-term average of 100, indicating stability. However, this steady state is the result of diverging trends in different areas.
The industry sector experienced a slight rebound, surpassing its long-term average. This positive shift was driven by an optimistic outlook on production and overall order books. Similarly, the retail trade sector also saw improvements, thanks to a resurgence in order intentions.
Unfortunately, the construction sector continued to face challenges, as the indicator for business climate in this industry continued to decline. This downward trend suggests a gloomy outlook for activity in construction.
In the services sector, the business climate indicator remained stable, just above its long-term average. However, there was a slight deterioration in the outlook for future workforce development in services, overshadowing the recent positive developments in this sector and in retail trade.
Regarding employment, the overall sentiment remained stable compared to May. The synthetic employment climate indicator, standing at 105, remained above its long-term average of 100. This stability in June was the result of contrasting developments. While the outlook for future workforce development in services (excluding temporary work agencies) weakened, there were positive trends in the same sector and in retail trade.
In conclusion, the business climate in France maintained its stability in June, with improvements in industry and retail trade balancing out the decline in construction. The employment climate also remained steady, with varying developments across different sectors.
