2023-05-25 10:32:48
For the third consecutive month, the business climate has deteriorated in France. According to data published on Thursday, the indicator calculated by INSEE lost two points. It thus finds itself at 100, that is to say at its long-term level. But also its lowest level since April 2021.
All sectors of activity believe that their horizon is darkening, even though it seemed to be holding up well against the vagaries of the economic situation and the social crisis. The deterioration is particularly clear in wholesale trade and construction. In the first sector, professionals point to the level of their past sales but also of the deliveries they have received from abroad. In the second, it is the workforce and the order books that are of concern.
Morale down in the industry
The level of order books is also a concern in the industry. Here again, the business climate is deteriorating for the third consecutive month and is just below its long-term average.
The situation is deteriorating more particularly in the manufacture of capital goods and that of transport equipment where it is weighed down by the automobile. The agri-food sector experienced a relative improvement: the business climate there was stable in May after having fallen sharply in April.
In services, the business climate indicator also fell for the third consecutive month. Business leaders are notably less optimistic about their personal business prospects and those of the sector as a whole. Here again, the deterioration affects practically all sectors of activity, with the exception of information-communication.
Retail is doing better than the others
In the end, and in spite of the constant concerns of the French about their purchasing power, which remains eroded by the level of inflation, it is the retail trade (including car repairs) which limits the most breakage. The business climate is “deteriorating slightly”, explains INSEE, even though business leaders have been concerned for several months by the decline in consumption.
In fact, if the balances of opinion on intentions to order and expected sales fall back and fall below their long-term average, conversely, the balance on general business prospects increases again. And business leaders feel they have a clearer view of the future. “Significantly fewer than last month consider that the future development of their company’s situation is difficult to predict”.
The horizon darkens for employment
The employment climate also deteriorated markedly in May, losing three points to 106 and reaching its lowest level since September 2021.
In question “mainly” the decline in the balances of opinion on the recent and future evolution of the workforce in the services, explains INSEE. However, it remains above its long-term average.
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