French economy ends 2023 on a high as business climate lightly rebounds - Euronews
French economy ends 2023 on a high as business climate lightly rebounds | Euronews
The slight improvement marks a reversal of the downward trend France's business climate has seen since the beginning of 2023.
The business climate in France rebounded slightly in December, thanks to renewed optimism among retail sector leaders, but remained below its historical average, according to new data from the country's statistical office.
The National Institute of Statistics and Economic Studies (Insee) said on Thursday that the business climate indicator stood at 98 in December, climbing by one point compared to November (97). However, it remains two points below its long-term average, set at 100.
Despite the slight improvement in December, France's business climate has been on a downward trend since the start of 2023, and has not exceeded its historical average since April.
Compared to November, the business climate in the retail sector specifically rose by four points, from 96 to 100.
This renewed optimism is "driven by the balance of opinion on planned staffing levels, the general outlook for the sector and order intentions," according to Insee.
The business climate in manufacturing is also improving, albeit more modestly (99 in November, 100 in December), with business leaders surveyed by Insee judging "recent developments in [their] production" more positively than before.
The same trend can be seen in services (increasing from 99 to 100 over one month), where the managers surveyed are now more optimistic about "their personal business prospects and those of the sector", according to Insee.
Business sentiment in the building sector remains unchanged at 102, two points above its long-term average.
The employment climate remains unchanged at 100.
"This stability is the result of contrasting trends," Insee said, noting that, on the one hand, retail trade representatives are more optimistic than before about recent and future staffing levels in the sector; on the other hand, managers of service companies are now more negative about recent staffing levels.
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