French business climate has faltered in April 2021

According to the report from INSEE, in April 2021, the business climate has deteriorated after a marked improvement in the previous month. The indicator that synthesizes it, calculated from the responses of business leaders in the main market sectors of activity, has lost two points. At 95, it stands below its long-term average (100).

This moderate decline is the result of the deterioration in the outlook for the tertiary sector, partly offset by a further improvement in the business climate in industry.

In retail trade, the climate has lost 5 points and stands well below its long-term average. In this sector, all forward-looking balances are affected, in connection with the strengthening of health measures at the end of March.

In the services sector, the climate has lost 3 points, due to the fall in most forward-looking balances, and also stands clearly below its average.

On the other hand, in manufacturing, the business climate has gained 5 points. At 104, he has returned above his average (100). In this sector, the balances of opinion on ordering intentions, on personal production prospects and on recent production have increased.

Finally, in building construction, the opinion of business leaders on the recent trend in their activity has improved while that of expected activity has darkened slightly. These two balances remain well above their respective averages.