In March 2017, the French business climate falters a little but remains above its long-term averageBusiness climate indicator and turning point indicator - March 2017

In March 2017, the business climate falters a little without invalidating the ongoing positive trend since December 2016. The composite indicator, compiled from the answers of business managers in the main sectors, has lost one point but stands four points above its long-term average (100). It is stable or virtually stable in services, building construction and trade. In contrast, it has lost three points in manufacturing.

Informations rapides
No 79
Paru le : 23/03/2017
Prochaine parution le : 24/10/2017 at 08:45 - October 2017

The French business climate indicator falters in March 2017

In March 2017, the business climate falters a little without invalidating the ongoing positive trend since December 2016. The composite indicator, compiled from the answers of business managers in the main sectors, has lost one point but stands four points above its long-term average (100). It is stable or virtually stable in services, building construction and trade. In contrast, it has lost three points in manufacturing.

Graph1 – French business climate composite indicator

Revisions

Compared to its first estimate last month, the business climate indicator of February 2017 has been raised by one point in the whole economy, building construction, services and retail trade. Those revisions result from the integration of late businesses' answers. The wholesale trade climate indicator of January 2017 has also been raised by one point compared to its estimate of January.

Table – Business climate and turning point indicators

Business climate and turning point indicators
Nov. 16 Dec. 16 Jan. 17 Feb. 17 March 17
Composite indicators
France 102 105 104 105 104
Manufacturing 102 106 106 107 104
Building construction 99 98 99 100 99
Services 102 106 102 104 104
Retail trade 104 107 106 104 105
Wholesale trade 98 - 103 - 103
Turning point indicators
France 0,3 0,6 0,4 0,8 0,1
Manufacturing 0,4 0,7 0,8 0,8 –0,5
Building construction 0,3 0,4 0,7 0,7 0,9
Services –0,2 0,8 0,2 0,5 0,6
Wholesale trade 0,0 - 0,9 - 0,8
  • Source: INSEE, Business tendency surveys

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 has gone into the area showing an uncertain short-term economic outlook.

Documentation

Methodology (pdf, 125 Ko)