According to the report from INSEE, the business climate indicator deteriorated again in May, recording the third monthly decline in a row, and reaching the lowest level since April 2021.
The data showed that the business climate indicator fell to 100 points from 102 points in April. Economists had expected a decline to 101 points.
INSEE said that all the main market sectors have contributed to this determination in May. In building construction, the business climate has darkened markedly (from 111 to 108). The manufacturing climate indicator fell for a third month - from 101 to 99, the lowest level since March 2021, compared to market forecasts of 101. In services, the business climate indicator has retreated for the third month in a row (from 103 to 101). In retail trade (including trade and repair of vehicles), the business climate fell to 100 from 101 in April. In wholesale trade, the bimonthly indicator of the business climate has determined sharply compared to March (from 98 to 94).
Meanwhile, the employment climate index fell to 106 points from 109 points in April, but remains above its long-term average (100). It stands at its lowest level since September 2021.