the business climate improves in France in November according to INSEE

Business leaders in the industrial sector nevertheless express a certain gloom.

Good news on the economic front. The business climate and employment climate brightened up again in November, continuing their momentum from the previous month, according to the National Institute of Statistics in a study published Friday, November 21. The indicator which measures the business climate stands at 98 and is close to its long-term average of 100. It has remained stable in construction and wholesale trade, but has fallen back in industry and retail trade, specifies the institute.

The indicator which measures the business climate is calculated on the basis of responses collected by INSEE from business leaders. In the services sector, the business climate benefited from a rebound, gaining three points, which reflects an improvement in the feeling of business leaders regarding expected demand, specifies INSEE. The decline observed in industry is, however, explained by greater fears among business leaders regarding production prospects and order books.

The business climate is also declining in retail trade and automobile repair, although with nuances. Thus, it increases significantly in retail trade (excluding automobiles), but falls back in automobile trade and repair, details INSEE. If the employment climate benefits from an improvement and gains one point over the month to settle at 96, it nevertheless remains below its long-term average of 100, marked by gloom.