France Business Climate Weakens in February

France’s overall business climate indicator fell to 97 in February 2026, the lowest level since late October, from 99 in January, moving further below its long-term average of 100. Manufacturing confidence dropped to 102 from 105, returning to its December level but remaining above average, as balances for past and expected production and overall order books deteriorated. Services sentiment also weakened, with the indicator falling to 95 from 98, as all subsectors contributed to the decline. Retail trade and motor vehicle repair edged down to 98 from 99, drifting further below average. Meanwhile, the business climate in building construction was unchanged at 97, remaining below its long-term norm. The employment climate deteriorated further, slipping to 93 from 94 and staying well below average, largely due to weaker hiring expectations in services excluding temporary work agencies.

France’s business climate indicator remained at 99 in January 2026, unchanged from December, just below its long-term average of 100. The improvement in manufacturing supported the overall climate, with the index rising to 105 (vs 102 in December), the highest level since July 2022. Views for wholesale trade also rebounded to 100 (vs 98), returning to its long-term average for the first time since November 2022, as past export sales and ordering intentions strengthened. Services remained stable at 98, below average, with business leaders’ expectations for activity and demand unchanged. Building construction also held steady at 97, below average, with past and expected activity stable. In contrast, retail trade and motor vehicle repair fell to 99 (vs 104), reversing most of December’s sharp rise and reflecting weaker ordering intentions. The employment climate slipped to 93 (vs 95), driven by weaker past and expected workforce size in services.

France’s business climate indicator rose to 99 in December 2025 from 98 in November, the highest level since February 2024, but remained below its long-term average of 100. The improvement was driven by a sharp rebound in retail trade and motor vehicle repair, where the index jumped to 104 (vs 97 in November), supported by stronger ordering intentions, and by manufacturing, which climbed to 102 (vs 98), returning above its long-term average amid better past production and firmer order books, particularly in other transport equipment. Confidence also edged higher in building construction to 96 (vs 95), though it stayed below average, while the services index was unchanged at 98, with gains concentrated in corporate services. In contrast, the employment climate slipped to 95 from 96, reflecting weaker expectations for future workforce size in services.