| Actual | Previous | |
|---|---|---|
| Index | 96 | 97 |
Highlights
In March 2025, the manufacturing sector showed signs of decline, with the business climate indicator falling to 96, edging further from its long-term average of 100. The order books and foreign order books both fell, while personal production prospects strengthened. Still, concerns remain as global demand continues to lag.
The manufacturing of transport equipment led the decline, with its climate indicator falling below its long-term average. A decrease in order books, particularly in motor vehicles and trailers, drove this decline. Food and beverage manufacturing similarly declined in March. However, machinery and equipment manufacturing saw an uptick, although it remains below its historical norm. The other manufacturing categories remained weak overall, with declines in almost all categories.
Labour shortages and supply chain constraints eased slightly, though sourcing difficulties have increased. Despite a decline in expected selling price trends, inflationary pressures remain. Workforce size expectations fell again this month, suggesting caution among manufacturers.
While last month momentum seemed to be improving, manufacturing is once again showing signs of decline this month. Demand uncertainty keeps optimism in check.
The manufacturing of transport equipment led the decline, with its climate indicator falling below its long-term average. A decrease in order books, particularly in motor vehicles and trailers, drove this decline. Food and beverage manufacturing similarly declined in March. However, machinery and equipment manufacturing saw an uptick, although it remains below its historical norm. The other manufacturing categories remained weak overall, with declines in almost all categories.
Labour shortages and supply chain constraints eased slightly, though sourcing difficulties have increased. Despite a decline in expected selling price trends, inflationary pressures remain. Workforce size expectations fell again this month, suggesting caution among manufacturers.
While last month momentum seemed to be improving, manufacturing is once again showing signs of decline this month. Demand uncertainty keeps optimism in check.
Definition
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.
Description
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.
