The data published by INSEE showed that in December the business climate indicator rose by 1 point, to 98 points. This was the first increase in the index since February. However, it remains below its long-term average (100). This slight rebound results mainly from the improvement of the business situation in retail trade.
INSEE said that the manufacturing climate indicator rose to 100 points (the highest level since July) from 99 points in November, driven by the improvement in the balance of opinion on the production over the last three months. Economists had expected the index to decline to 98 points. The indicator of the business climate in the service sector increased by 1 point to 100 points, returning to its long-term average. In the building construction sector, the business climate indicator has not changed (102 points). In retail trade (including trade and repair of vehicles), the business climate increased by 4 points, to 100 points.
The data also showed that the employment climate index has not changed (100 points). This stability is the result of mixed movements, the increase in the balances of opinion on the past and the expected change in the workforce size in retail trade being counterbalanced by the decline in the one concerning their past change in services (excluding temporary work agencies).