Slight improvement in the business climate in June, but the indicator remains below its long-term average and the employment climate is deteriorating.
The summary indicator of the business climate in France stood at 94 in June, compared to 93 in May, in revised data, indicated the National Institute of Statistics and Economic Studies (Insee) in a press release. It thus remains below its long-term average (100) for the twenty-fifth consecutive month.
According to INSEE, “the business climate is recovering somewhat overall, made up of retail trade, trade and automobile repair, remains sluggish in services, and is falling back in construction as well as in industry.” In industry, the business climate indicator stood at 100 in June, compared to 102 in May.
Deterioration of the employment climate
The synthetic employment climate indicator lost 3 points in June, to 89, its lowest level since June 2013, excluding the health crisis. It is particularly penalized by “the further deterioration of the balance on the number of staff planned in the services (including temporary)”, specified INSEE.
INSEE forecasts growth of 0.7% for 2026. Despite the slight improvement observed in June, France is struggling to return to a sustained pace of growth, with several key sectors continuing to face difficulties.
