French business climate has improved slightly in September

According to the report from Insee, in September 2021, despite contrasting developments among sectors, the business climate has improved slightly, after decreasing for two months in a row. The indicator that synthesizes it, calculated from the responses of business leaders from the main market sectors of activity, has gained one point. At 111, it remains at a high level, well above that before the health crisis (106) and, even more so, its long-term average (100).

In the services sector, the climate has improved slightly (+1 point) and remains at a high level. Managers are a bit more optimistic about their activity and demand prospects.

In building construction as well, the business managers declare being a little more confident regarding their activity prospects, despite pressures on production capacities remaining strong.

In manufacturing, however, the business climate has weakened markedly (–4 points): the balances of opinion on recent production and to a lesser extent those on foreign order books and personal production prospects fuel this fall.

In retail trade (including trade and repair of vehicles), the business climate has worsened again (–3 points). In particular, the balance of opinion on recent activity has sharply declined. The climate indicator has even fallen below its long-term average in the sector of retail trade excluding vehicles.

Finally, in wholesale trade, the bimonthly business climate has also weakened and lost three points compared to July, mainly because of the fall in the balances of opinion concerning past sales.

Increasing or falling in September, the business climate indicator remains above its long-term average in all different main economic sectors.