This slight improvement marks a reversal from the downward trend the French business environment has seen since the beginning of 2023.
France’s business environment improved slightly in December thanks to new optimism among retail industry leaders, but remained below historical averages, according to new data from the country’s statistics agency.
The National Institute for Statistics and Economic Research (Insee) announced on Thursday that the business conditions index for December was 98, an increase of 1 point compared to November (97). However, if the long-term average is taken as 100, it is still 2 points below.
Although it improved slightly in December, business confidence in France has been on a downward trend since the beginning of 2023, and has not exceeded the historical average since April.
Compared to November, business confidence, especially in the retail sector, rose 4 points from 96 to 100.
Incy said this new optimism is “driven by a balance of views regarding planned staffing levels, the general outlook for the industry, and the direction of production.”
The business environment for manufacturing is also improving, albeit more slowly (99 in November, 100 in December), with business leaders surveyed by Insee assessing “recent developments.” [their] We will be more proactive than before.
A similar trend is seen in the service industry (up from 99 employees to 100 employees in one month), according to Incy, where executives surveyed are more confident about their “individual business outlook and the overall industry outlook.” He says he is feeling optimistic.
Business confidence in the construction sector remained unchanged at 102, two points above the long-term average.
The employment situation remains unchanged at 100.
“This stabilization is the result of contrasting trends,” Incey said, noting that while retail industry representatives are more optimistic about the sector’s recent and future staffing levels, Industry representatives indicated they were more optimistic than before. Meanwhile, service company executives have become more negative about staffing these days.
