According to the report from INSEE, the business climate indicator in France dropped to 107 points in January from 109 points in December. However, the index remained above its long-term average (100 points).
The data showed that the business climate in the services sector continued to deteriorate in January amid a further decline in the assessment of the overall prospects for the sector. Meanwhile, the business climate in the retail sector also declined relative to December, which was due to a deterioration in the assessment of overall business prospects. A decline in the business climate was also recorded in the wholesale trade sector, mainly due to a deterioration in the overall forecast of business activity. The data also pointed to the deterioration of the business climate in the construction sector against the background of a decrease in the assessment of past and future activity. However, the business climate grew in the manufacturing sector, which was associated with an increase in the valuation of orders.
INSEE also reported that the employment climate index remained at 110 points, which is much higher than the average value (100 points).