23 August 2018

2018- n° 220

In August 2018, the French business climate falters slightly and the employment climate is stable Business climate indicator and turning point indicator - August 2018

In August 2018, the business climate has faltered slightly but remains at a relatively high level. The composite indicator, compiled from the answers of business managers in the main sectors, has lost one point and stands at 105, above its long-term mean (100). It has returned to its level of May 2017. Compared to July, the business climate has lost one point in building construction as in services, and three in retail trade. It has gained one point in manufacturing industry. The business climate remains above its long-term mean in all the sectors.

In August 2018, the employment climate is stable. The associated composite indicator stands, as in July, at 108, that is well above its long-term average. Mainly, the rise in the balance of opinion on expected employment in services sector excluding temporary employment has offset the decline in that on expected employment in retail trade.

Compared to their first estimate in July 2018, the composite indicators for manufacturing industry, services and retail trade have been raised by one point. Those revisions result from the integration of late answers from businesses, as well as, for manufacturing and services, from the update of the seasonal coefficients and the parameters of the composite indicator. The other climate indicators are unchanged.

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