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

In Novembre 2017, the business climate, already very favourable, has improved again. The composite indicator, compiled from the answers of business managers in the main sectors, has gained two points. At 111, it has returned to its January 2008 level, well above its long-term mean (100). The business climate has grown in each sector: it has increased by one point in manufacturing industry, by two points in services, building construction and wholesale trade, by three points in retail trade. It stands at its pre-crisis level in several sectors, at an unseen level since 2007 in manufacturing industry, retail and wholesale trade, since 2008 in building construction.

Informations rapides
No 308
Paru le : 23/11/2017
Prochaine parution le : 21/12/2017 at 08:45 - December 2017

The French business climate is very favourable

In Novembre 2017, the business climate, already very favourable, has improved again. The composite indicator, compiled from the answers of business managers in the main sectors, has gained two points. At 111, it has returned to its January 2008 level, well above its long-term mean (100). The business climate has grown in each sector: it has increased by one point in manufacturing industry, by two points in services, building construction and wholesale trade, by three points in retail trade. It stands at its pre-crisis level in several sectors, at an unseen level since 2007 in manufacturing industry, retail and wholesale trade, since 2008 in building construction.

The employment climate has improved again

In November 2017, the employment climate has still improved, mainly driven by the rise in the balances of opinion on workforce size in retail trade and manufacturing industry. The associated composite indicator has gained one point to 109, clearly above its long-term mean and at its highest level since the summer of 2011.

Revisions

Compared to its first estimate, the employment climate indicator has been lowered by one point in October 2017. Those revisions result from the integration of late answers from businesses.

Graph 1 – French business climate composite indicator

Graph 2 – French employment climate composite indicator

Table 1 – Business and employment climates

Business and employment climates
July 17 Aug. 17 Sept. 17 Oct. 17 Nov. 17
Business climates
France 108 109 110 109 111
Manufacturing 108 111 111 111 112
Building 105 104 104 105 107
Services 104 107 108 107 109
Retail trade 111 108 112 113 116
Wholesale trade 110 - 109 - 111
Employment climate
Employment 107 105 107 108 109
  • 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, where it stands since April 2017.

Table 2 – Turning point indicators

Turning point indicators
July 17 Aug. 17 Sept. 17 Oct. 17 Nov. 17
France 0.6 0.8 0.9 0.8 0.9
Manufacturing 0.5 0.6 0.9 0.8 0.7
Building 1.0 0.6 0.5 0.7 0.8
Services 0.8 0.8 1.0 0.6 0.9
Wholesale trade 0.9 - 0.9 - 0.9
  • Source: INSEE. Business tendency surveys

Graph 3 – Turning point indicator

  • Close to +1 (resp. –1). the indicator shows a favourable business climate (resp. unfavourable). The uncertainty area is between
  • –0.3 and +0.3.

Documentation

Abbreviated Methodology (pdf, 130 Ko)