France Business Climate Improves Again

France’s overall business climate improved for a third month in a row to 98 in August 2026 from 95 in the previous month, reaching its highest level since March and moving closer to its long-term average of 100. Retail trade saw the largest gain, with its climate indicator rising to 99 from 96, almost reaching its long-term average, supported by stronger ordering intentions and assessments of past sales. Manufacturing sentiment also strengthened (103 vs 101), mainly due to a sharp improvement in personal production prospects. The services climate edged up to 100 from 99, reaching its long-term average as assessments of past and future activity and expected demand improved. Meanwhile, the building construction climate remained unchanged at 96, below its long-term average, as improved expectations for future activity offset stable assessments of past activity. The employment climate was unchanged at 99.

France’s overall business climate improved to 97 in July 2026 from 95 in the previous month, reaching its highest level since March, though it remained below its long-term average of 100. The pickup was driven by retail trade, where the climate indicator climbed to 99 from 91, supported by a sharp improvement in ordering intentions and the general business outlook. The services climate also strengthened to 98 from 96, as conditions improved across all service sectors except information and communication. Additionally, manufacturing sentiment edged up to 101 from 100, supported by more favorable assessments of past production and global order books. Meanwhile, wholesale trade sentiment eased to 95 amid weaker views on past sales, including exports. The construction climate held steady at 95, as slightly weaker expectations for future activity offset improved assessments of past activity. At the same time, the employment climate remained steady at 98, following its rebound in June.

France’s overall business climate edged up to 94 in June 2026 from 93 in the previous month, though it remained well below its long-term average of 100. Retail trade showed a modest recovery, with the indicator rising to 90 from 89 as ordering intentions and the general business outlook improved slightly. Services also held steady at 93, signaling continued subdued conditions across all major sub-sectors. Meanwhile, sentiment in manufacturing weakened, with the indicator falling to 100 from 102 as assessments of past production deteriorated and production expectations continued to soften. Building construction also eased to 96 from 97, reflecting weaker views on recent activity despite improved expectations for future activity. At the same time, the employment climate declined further to 89 from 92, its lowest level since June 2013 excluding the health crisis, as firms in services and retail trade reported weaker workforce trends and hiring expectations.