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FR: Business Climate Indicator
| Actual | Previous | Revised | |
| Index | 94 | 94.0 | 93 |
Highlights
Business confidence improved in June, as shown by the increase in the Business Climate Index to 94, from a revised 93 (94) in May. The confidence reading has been below its long-term average of 100 since March of 2023 when it was 100.5
The manufacturing index fell to 100 in June from 102 in April, while the services component held steady at 93. Sentiment among retailers improved in June to a reading of 90 from 89 the previous month.
Employment continues to remain a drag, with the measure falling to 89 in June from 92 the previous month, marking the lowest point since June of 2013.
Uncertainty around the situation in the Middle East is continuing to weigh on business sentiment. Although there is some tentative progress in resolving the conflict, a real solution remains elusive and will continue to weigh on sentiment.
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.