The data published by INSEE showed that in June, the business climate indicator was 96 points, unchanged from May. This is 4 points lower than its long term average (100). Economists had expected the index to drop to 95 points. The business climate has slightly diminished in manufacturing industry and building construction and has slightly increased in services and retail trade.
INSEE said that the manufacturing climate indicator dropped by 1 point to 96 points. Consensus estimates suggested that the index will be 97 points. It remains below its long-term average (100) for the 14th month in a row. This decrease is mainly due to the fall back in the balance of opinion on personal business outlook and to the sharp increase in the balance on the level of finished-good inventories. The indicator of the business climate in the service sector increased by 1 point, to 96 points. In the building construction sector, the business climate indicator also remained down 1 point, to 100 points. In retail trade (including trade and repair of vehicles), the business climate increased by 1 point to 99 points.
The data also showed that the employment climate index rose to 97 points from 94 points in May. It however stands below its long-term average (100) for the 13th consecutive month. This rebound in the climate is mainly due to the rebound in the balance on future workforce size in services (excluding temporary work agencies).