The data published by INSEE showed that in December the business climate indicator fell by 2 points compared to November, reaching 94 points, while economists expected the index to remain unchanged. Thus, it has moved away from its long term average (100). The business climate has deteriorated in every sector except the manufacturing industry, where it remains stable, but stands below its long-term average.
INSEE said that the manufacturing climate indicator remained at 97 points. Consensus estimates suggested a decrease to 96 points. It remains below its long-term average (100) for the 8th month in a row. The balances of opinion on order books have raised again but all those related to activity have fallen. The indicator of the business climate in the service sector fell by 2 points to 96 points. In the building construction sector, the business climate indicator decreased by 1 point to 98 points. In retail trade (including trade and repair of vehicles), the business climate fell by 2 points to 96 points.
The data also showed that the employment climate index dropped to 96 points from 98 points in November. This deterioration is reflected in almost all the balances of opinion on both past and future employment.