France Business Climate Stable in March

France’s overall business climate fell to 94 in April 2026, the lowest level since July 2024, from 97 in March, moving further below its long-term average of 100. The deterioration was driven by a sharp drop in retail trade and motor vehicle confidence, where the climate indicator plunged to 94 from 99, pressured by weaker ordering intentions and a softer business outlook. Services sentiment also worsened, with the sector gauge slipping to 94 from 96, marking its lowest level since April 2015 outside the pandemic period and remaining below its long-run norm for an eighteenth straight month. Meanwhile, the business climate in building construction was unchanged at 96, still below average, as weaker expectations for future activity offset a modest rebound in views on past activity. In contrast, manufacturing provided a small offset, with confidence edging up to 100 from 99, returning to its long-term average on firmer assessments of past production and order books.

France’s overall business climate held at 97 in March 2026, remaining below its long-term average of 100. Manufacturing confidence fell to 99 from 102 in February, returning below the long-term norm, as balances for past production and order books, both overall and foreign, weakened, especially in the “other transport equipment” segment. Services sentiment stayed subdued at 96, with corporate services showing particularly gloomy conditions. The business climate in building construction edged up slightly to 97 (vs 96), supported by stable past activity and marginally improved order books, but remained under its long-term average. Retail trade and motor vehicle repair rebounded modestly to 99 (vs 98), driven by stronger ordering intentions. Meanwhile, the employment climate rose to 94 from 93, still below average, mainly due to improved expectations for workforce size in services, including temporary work agencies.

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.