French business confidence improves as hiring expectations weaken
France’s business-climate index edged up to 97 in October, with manufacturing leading the improvement. Retail and construction weakened, and the employment-climate indicator fell to 95. Both national measures remained below their long-term average of 100. The survey shows business confidence recovering unevenly while staffing expectations moved in the opposite direction.
Economics & Markets··Evening
Manufacturing leads the recovery in confidence
France’s business confidence improved in October, led by manufacturing. The national business-climate indicator rose one point to 97. Insee, France’s national statistics institute, compiles the measure from business leaders’ survey responses. The overall reading remained below its long-term average of 100.[1], [2]
Industry gained four points to 105, with every component opinion balance contributing. Views on total and foreign order books made the largest contributions. Services recorded a smaller improvement of one point, reaching 99.[1]
Retail confidence and staffing expectations weaken
Retail trade, including vehicle sales and repairs, fell three points to 93. A sharp deterioration in the general business outlook drove most of the decline. Construction slipped one point to 95: managers’ assessments of past activity worsened, although expectations for future activity improved again.[1]
The employment-climate indicator declined three points to 95. Weaker staffing expectations among service businesses excluding temporary-work agencies accounted for that fall. It too remained below a long-term average of 100.[1]
The survey covers responses through October 19
October responses were collected from September 25 to October 19, with most arriving during the first two weeks. The national business index combines 28 opinion balances, while the employment index uses ten balances on past and expected staffing. September’s headline reading was unchanged after rounding, but late responses lifted its retail indicator by two points.[1]
