French business climate remains deteriorated in June, the but has recovered very clearly

According to the report from Insee, in June 2020, the business climate has recovered very clearly, in connection with the acceleration of the lockdown exit. The indicator that synthesizes it, calculated from the responses of business managers from the main market sectors, has gained 18 points, its largest monthly increase since the start of the series (1980).

At 78, the business climate has exceeded the low point reached in March 2009 (70), but remains far below its long-term average (100).

This sharp rise in the overall synthetic indicator is explained in particular by the more optimistic view that companies have on their activity prospects, in all sectors, under the effect of the the lockdown exit. Conversely, the balances of opinion relating to activity in the past three months remain very low.

In June 2020, the employment climate has continued to recover. The composite indicator has risen by 13 points, its largest monthly increase since the start of the series (1991), amplifying the rebound that began in May after an unprecedented fall in April. At 66, the employment climate still remains far below its May 2009 low (73), and, a fortiori, its long-term average (100).