In April 2017, the French business climate and the employment climate are still favourableBusiness climate indicator and turning point indicator - April 2017

In April 2017, as since December 2016, the business climate remains favourable. The composite indicator, compiled from the answers of business managers in the main sectors, stands, as in March, four points above its long-term average (100). It has gained three points in manufacturing and remains stable in building construction. In contrast, it has lost one point in services and three points in retail trade.

Informations rapides
No 107
Paru le : 25/04/2017
Prochaine parution le : 24/08/2017 at 08:45 - August 2017

The French business climate indicator remains well above its normal

In April 2017, as since December 2016, the business climate remains favourable. The composite indicator, compiled from the answers of business managers in the main sectors, stands, as in March, four points above its long-term average (100). It has gained three points in manufacturing and remains stable in building construction. In contrast, it has lost one point in services and three points in retail trade.

Graph1 – French business climate composite indicator

Table1 – Business and employment climates

Business and employment climates
Dec. 16 Jan. 17 Feb. 17 March 17 April 17
Business climates
France 105 104 105 104 104
Manufacturing 106 106 107 105 108
Building 98 99 100 100 100
Services 106 102 104 104 103
Retail trade 107 106 104 106 103
Wholesale trade - 103 - 103 -
Employment climate
Employment 107 106 105 108 107
  • Source: INSEE, Business tendency surveys

The employment climate has faltered after hitting in March a level unseen since the summer 2011

In April 2017, the employment climate has dipped, in particular because of the retail trade sector. The associated composite indicator has lost one point and stands at 107, after having reached in March its highest level since August 2011. It remains well above its long- term average.

Graph3 – French employment climate composite indicator

Revisions

Compared to its first estimate last month, the business climate indicator of March 2017 has been raised by one point in manufacturing, building construction, and retail trade. Those revisions result from the integration of late businesses' answers.

Table2 – Turning point indicators

Turning point indicators
Dec. 16 Jan. 17 Feb. 17 March 17 April 17
France 0.6 0.4 0.8 0.3 0.4
Manufacturing 0.7 0.8 0.8 –0.5 0.3
Building 0.4 0.7 0.7 0.9 0.6
Services 0.8 0.2 0.5 0.6 0.0
Wholesale trade - 0.9 - 0.8 -
  • Source: INSEE, Business tendency surveys

The turning point indicator for the French economy as a whole is in the area showing a favourable short-term economic outlook.

Graph2 – Turning point indicator

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

Documentation

Abbreviated Methodology (pdf, 130 Ko)