The data published by INSEE showed that in October the business climate indicator fell by 1 point compared to September, reaching 97 points, while economists expected an increase to 99 points. Thus, the index still remains below its long-term average (100). The latest decline in the index was caused by a significant fall of the business climate in the manufacturing industry.
INSEE said that the manufacturing climate indicator fell by 7 points to 92 points. Consensus estimates suggested a decrease to 98 points. All the balances of opinion defining the climate have contributed to its decline. In particular, the balances of opinion on past production, personal production expectations and order books have sharply fallen. The indicator of the business climate in the service sector increased by 2 points to 101 points. In the building construction sector, the business climate indicator remained at 100 points. In retail trade (including trade and repair of vehicles), the business climate decreased by 1 point to 99 points.
The data also showed that the employment climate index fell to 97 points from 99 points in September. This worsening is mainly the result of the decrease in the balances of opinion regarding the workforce size in services (excluding temporary work agencies).