The data published by INSEE showed that in April, the business climate indicator fell by 1 point to 96 points, confirming economists' forecasts and remaining below its long term average (100). The business climate has rebounded in manufacturing industry and services, has diminished in building construction and has strongly retreated in retail trade.
INSEE said that the manufacturing climate indicator rose by 3 points to 99 points (the highest value since May 2024). Consensus estimates suggested that the index will remain unchanged. It remains below its long-term average (100) for the 12th month in a row. This rise in the climate results from nearly all the balances of opinion contributing to its calculation, except for general production prospects and the current level of finished-goods inventories. The indicator of the business climate in the service sector increased by 1 point, to 98 points. In the building construction sector, the business climate indicator also remained down 1 point, to 97 points. In retail trade (including trade and repair of vehicles), the business climate decreased by 5 points to 95 points.
The data also showed that the employment climate index rose to 97 points from 96 points in March. It however stands below its long-term average (100) for the eleventh consecutive month. This improvement is mainly due to the increase in the balance on future workforce size in services (including temporary work agencies).