The November business climate in manufacturing remained pessimistic but narrowed its gap with its 100 long-term average. It has now been sub-100 for seventh consecutive months. The indicator climbed to 97, two points above the consensus and marking a partial recovery from October's upwardly revised 93. Improvements in balances of opinion on past and expected production, as well as order books, underpinned the increase though general production prospects remain a drag.

Across the sectors, the transport equipment industry rebounded above its long-term average, while food products and beverages edged closer to the average, driven by strong production but constrained by weak order books. Machinery and equipment manufacturing showed incremental recovery, despite falling inventories. Supply-side barriers are easing, and workforce size expectations remain optimistic, offering some confidence.

While the manufacturing climate shows signs of recovery, structural vulnerabilities and subdued long-term expectations temper any celebration. Indeed, the economy-wide gauge dipped a point to 96, a 4-month low, on deteriorating confidence elsewhere. That said, this latest update puts the RPI at 11 and RPI-P at 15, showing overall economic activity slightly outperforming expectations.

Having fallen surprisingly sharply to just 92 in October, sentiment in manufacturing is expected to stage only a partial recovery to 95 this month.

INSEE is France's National Institute of Statistics and Economic Studies. INSEE's business climate indicator aims to summarise the mood of French business leaders. The survey asks questions about output, orders and inventories and expectations for future business. These are synthesised into an overall index of sentiment, adjusted so that the long-run average is 100. The main focus is the manufacturing sector but the survey also provides separate confidence measures for construction, retail trade and services on a monthly basis and for wholesale trade every other month.

If you are looking for clues on French business sentiment, this survey would be a good starting point. The indicator is based on a survey that asks business leaders about their expectations for new orders and their overall impressions of the economy. The results are a diffusion index that reflects the difference between positive and negative responses as a percentage of the total number of answers.