22 February 2018

2018- n° 45

In February 2018, the French business climate falters slightly again but remains favourable; the employment climate is stable Business climate indicator and turning point indicator - February 2018

In February 2018, the business climate is slightly less favourable than in the previous month. The composite indicator, compiled from the answers of business managers in the main sectors, has lost two points after a slight dip in January. Nevertheless, at 109, it is still well above its long-term mean (100). The business climate has lost three points in services, two points in manufacturing industry and one point in building construction. It is stable in retail trade. It remains well above its long-term mean in all the sectors.

In February 2018, the employment climate is stable. The associated composite indicator stands at 109 for the third consecutive month, clearly above its long-term mean (100) and at its highest level since August 2011. In detail, the decrease in the balance of opinion on expected workforce size in the service sector (excluding temporary employment) has been offset by the rise in the balances on past workforce size in the service sector (excluding temporary employment) and on expected workforce size in temporary work agencies.

Compared to their first estimate in January 2018, the composite indicators for the whole economy and manufacturing industry have been raised by one point. Those revisions result from the integration of late answers from businesses.

The turning point indicator for the French economy as a whole has moved into the area showing an uncertain short-term economic outlook, for the first time since April 2017.