In June 2017, the French business climate and the employment climate improve againBusiness climate indicator and turning point indicator - June 2017

In June 2017, the business climate has reached a level unseen in six years, heightening the favourable trend apparent since the end of 2016. The composite indicator, compiled from the answers of business managers in the main sectors, has gained one point to 106. It stands well above its long-term average (100). It has gone up by four points in retail trade, where it is at its highest level since the beginning of 2008. It has risen by one point in building construction, to an unprecedented level since six years. It is virtually stable in manufacturing industry, well above its long-term mean. Finally, it is stable in services, above its normal.

Informations rapides
No 168
Paru le : 22/06/2017
Prochaine parution le : 24/08/2017 at 08:45 - August 2017

The French business climate improves in June and returns to its highest level since the summer 2011

In June 2017, the business climate has reached a level unseen in six years, heightening the favourable trend apparent since the end of 2016. The composite indicator, compiled from the answers of business managers in the main sectors, has gained one point to 106. It stands well above its long-term average (100). It has gone up by four points in retail trade, where it is at its highest level since the beginning of 2008. It has risen by one point in building construction, to an unprecedented level since six years. It is virtually stable in manufacturing industry, well above its long-term mean. Finally, it is stable in services, above its normal.

The employment climate improves

The employment climate remains in June 2017 on an upward trend, driven this month by retail trade: the associated composite indicator has gained one point to 109, a peak since mid-2011.

Revisions

Compared to its first estimate last month, the business climate indicator of May 2017 has been raised by one point in retail trade and building industry. Those revisions result from the integration of late businesses' answers, as well as, concerning building industry, the update of seasonal coefficients and parameters of the composite indicator.

Graph1 – French business climate composite indicator

Graph3 – French employment climate composite indicator

Table1 – Business and employment climates

Business and employment climates
Feb. 17 March 17 April 17 May 17 June 17
Business climates
France 104 104 104 105 106
Manufacturing 107 106 108 109 108
Building 100 100 100 103 104
Services 104 104 104 103 103
Retail trade 104 106 102 105 109
Wholesale trade - 103 - 104 -
Employment climate
Employment 105 109 106 108 109
  • 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
Feb. 17 March 17 April 17 May 17 June 17
France 0.6 0.2 0.3 0.3 0.8
Manufacturing 0.6 –0.7 0.2 0.7 0.6
Building 0.4 0.8 0.8 0.9 1.0
Services 0.5 0.6 0.5 0.0 0.9
Wholesale trade - 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)