In December 2016, the French business climate improves markedlyBusiness climate indicator and turning point indicator - December 2016

After being almost stable since August 2015, equal or slightly above its long term average (100), the climate has improved markedly in December 2016. The composite indicator, compiled from the answers of business managers in the main sectors, has gained three points. It stands five points above its long term mean, reaching its highest level since the summer 2011. The climate has gained four points in services as in manufacturing, and three points in retail trade. However, it has lost one point in building construction.

Informations rapides
No 328
Paru le : 16/12/2016
Prochaine parution le : 21/12/2017 at 08:45 - December 2017

The French business climate indicator has gained three points

After being almost stable since August 2015, equal or slightly above its long term average (100), the climate has improved markedly in December 2016. The composite indicator, compiled from the answers of business managers in the main sectors, has gained three points. It stands five points above its long term mean, reaching its highest level since the summer 2011. The climate has gained four points in services as in manufacturing, and three points in retail trade. However, it has lost one point in building construction.

Graph2 – Turning point indicator

  • Close to +1 (resp. −1): favourable business climate (unfavourable), between +0.3 and −0.3: uncertainty area

The turning point indicator for the French economy as a whole remains in the area showing a favourable economic outlook.

Graph1 – French business climate composite indicator

Table – Business climate and turning point indicators

Business climate and turning point indicators
Aug. 16 Sept. 16 Oct. 16 Nov. 16 Dec. 16
Composite indicators
France 101 101 102 102 105
Manufacturing 101 103 103 102 106
Building construction 95 96 96 99 98
Services 101 102 101 102 106
Retail trade 103 102 100 104 107
Wholesale trade - 98 - 96 -
Turning point indicators
France –0,2 0,6 0,2 1,0 0,9
Manufacturing –0,1 0,2 0,3 0,4 0,9
Building construction –0,4 0,2 –0,2 0,3 0,2
Services –0,4 –0,2 –0,4 –0,2 0,8
Wholesale trade - –0,4 - –0,1 -
  • Source: INSEE, Business tendency surveys

Revisions

Compared to its first estimation, the composite indicator in manufacturing has been lowered by one point, because of late businesses' answers that have been taken into account.

Documentation

Methodology (pdf, 125 Ko)