In May 2017, the French business climate and the employment climate improveBusiness climate indicator and turning point indicator - May 2017

In May 2017, the business climate remains favourable, such as since the beginning of the year. The composite indicator, compiled from the answers of business managers in the main sectors, has gained one point and stands five points above its long-term average (100). It has gone up by two points in building construction where it has reached an level unseen for five years. It has also slightly risen in retail trade (+2 points) and in wholesale trade (+1 point). It remains stable at a high level in manufacturing industry. Finally, it is practically stable in services (−1 point), remaining above its normal.

Informations rapides
No 137
Paru le : 23/05/2017
Prochaine parution le : 24/08/2017 at 08:45 - August 2017

The French business climate indicator confirms the favourable trend of the past months

In May 2017, the business climate remains favourable, such as since the beginning of the year. The composite indicator, compiled from the answers of business managers in the main sectors, has gained one point and stands five points above its long-term average (100). It has gone up by two points in building construction where it has reached an level unseen for five years. It has also slightly risen in retail trade (+2 points) and in wholesale trade (+1 point). It remains stable at a high level in manufacturing industry. Finally, it is practically stable in services (−1 point), remaining above its normal.

The employment climate impoves anew

After a slight dip in April, the employment climate has improved in May, mainly because of the temporary employment sector. The associated composite indicator has gained two points to 108, consolidating the upward trend observed for one year. It stands then well above its long-term average.

Revisions

Compared to its first estimate last month, the business climate indicator of April 2017 has been raised by one point in manufacturing and services. In contrast, it has been lowered by one point in retail trade. Those revisions result from the integration of late businesses' answers.

Graph1 – French business climate composite indicator

Graph3 – French employment climate composite indicator

Table1 – Business and employment climates

Business and employment climates
Jan. 17 Feb. 17 March 17 April 17 May 17
Business climates
France 104 105 104 104 105
Manufacturing 106 107 105 109 109
Building 99 100 100 100 102
Services 102 104 104 104 103
Retail trade 106 104 106 102 104
Wholesale trade 103 - 103 - 104
Employment climate
Employment 106 105 109 106 108
  • Source: INSEE, Business tendency surveys

The turning point indicator remains in the favourable area

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

Table2 – Turning point indicators

Turning point indicators
Jan. 17 Feb. 17 March 17 April 17 May 17
France 0,4 0,8 0,3 0,5 0,5
Manufacturing 0,8 0,8 –0,5 0,3 0,8
Building 0,7 0,7 0,9 0,6 0,8
Services 0,2 0,5 0,6 0,5 0,3
Wholesale trade 0,9 - 0,8 - 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.

Documentation

Abbreviated Methodology (pdf, 130 Ko)