According to the report from the Insee, the business climate index unexpectedly declined in April, recording the second monthly decline in a row, and reaching the lowest level since January.
The business climate index was 102 points compared to 103 points in March. Economists had expected an increase to 104 points. Despite the decline, the index remains above its long-term average (100).
Insee said that the decline in the business climate was mainly caused by the deterioration of the business situation in the service sector and in the manufacturing industry. In construction, the business climate has not changed relative to March, while the business climate in retail has improved a little,
The data also showed that in April, the employment conditions index fell for the first time since December 2022 - to 108 from 110 in March. This deterioration in April is, for the most part, the result of the fall in the balances of opinion related to the past and expected change in the workforce size in services (excluding temporary work agencies) and in the manufacturing industry.