The Business Climate Index fell to 96 in June from 97 the previous month, remaining below the long-term average of 100, as finished goods inventories increased.

Inventories rose to a reading of 15 in June from 9, indicating that slack demand is leading to goods piling up. At the same time order books deteriorated to minus 24 in June from minus 23, while foreign order books slumped to minus 17 from minus 16.

With uncertainty around tariffs continuing, there is not likely to be a turnaround anytime soon.

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.