22 June 2017
2017- n° 168In June 2017, the French business climate and the employment climate improve again Business 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.
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.
graphiqueGraph1 – French business climate composite indicator
graphiqueGraph3 – French employment climate composite indicator
tableauTable1 – 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.
tableauTable2 – 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
graphiqueGraph2 – 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)
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