The data published by INSEE showed that in January, the business climate indicator remained unchanged compared to December, at 95 points (the lowest value since July 2024), while economists expected a decline to 93 points. Thus, the index remained below its long term average (100). The business climate has been stable in services, building construction and retail trade and has deteriorated in manufacturing industry and wholesale trade.
INSEE said that the manufacturing climate indicator dropped by 2 points to 95 points. Consensus estimates suggested a decrease to 96 points. It remains below its long-term average (100) for the 9th month in a row. The balances of opinion on order books have strongly retreated. The indicator of the business climate in the service sector remained at 96 points. In the building construction sector, the business climate indicator also remained unchanged (98 points). In retail trade (including trade and repair of vehicles), the business climate has stabilized at 97 points.
The data also showed that the employment climate index rose to 98 points from 97 points in December. This improvement is mainly due to the improvement of the balance of opinion on future employment in services.