The data published by INSEE showed that in January the business climate indicator was 98 points, unchanged from December and remaining below its long-term average (100). This stability is the result of mixed movements: the business situation has improved in building construction, in services and in retail trade, but it has deteriorated in wholesale trade.
INSEE said that the manufacturing climate indicator remained at 99 points, just below its long-term average. The December figure was revised to 99 points from 100 points. Economists had expected the index to be 100 points. The indicator of the business climate in the service sector increased by 1 point to 101 points, thanks to the balances of opinion on the recent activity and the expected demand. In the building construction sector, the business climate indicator was 103 points (+2 points compared to December). In retail trade (including trade and repair of vehicles), the business climate increased by 4 points, to 104 points, held up by the balances of opinion on the ordering intentions and the past sales.
The data also showed that the employment climate index fell by 1 point, to 99 points. The index dropped below its long-term average (100) for the first time since April 2021. This deterioration is the result of the decrease in the balance of opinion on the expected change in the workforce size in services (excluding temporary work agencies).