The data published by INSEE showed that in May the business climate indicator was 99 points, unchanged from April and remaining below its long-term average (100). The improvement of the business situation in services offsets the degradation in retail trade and, to a lesser extent, in manufacturing industry and wholesale trade.
INSEE said that the manufacturing climate indicator decreased by 1 point, to 99 points (just below its long-term average), weighed down by the balances of opinion related to the past and expected change in production. Economists had expected the index to be 100 points. The indicator of the business climate in the service sector increased by 1 point to 101 points. In the building construction sector, the business climate indicator remained at 101 points. In retail trade (including trade and repair of vehicles), the business climate fell by 3 points, to 99 points, following the decline in the balances of opinion regarding the ordering intentions, the expected change in the workforce size and the past sales.
The data also showed that the employment climate index remained at 102 points, which is higher than its long-term average (100). The stability hides mixed movements: if the balances of opinion on the past and expected change in the workforce size have deteriorated in manufacturing industry and building construction, the one on its expected change has improved in services (excluding temporary work agencies).