France Business Climate Deteriorates in September

France’s overall business climate fell to 96 in September 2026 from 98 in the previous month and moving further below its long-term average of 100. The decline was driven mainly by retail trade, where the indicator dropped five points to 94, as order intentions, the overall business outlook and past sales assessments weakened. The services climate also edged down to 98 from 99, with demand, activity and expected staffing balances declining, while wholesale trade fell two points to 93 as past export sales and order intentions weakened. Meanwhile, the business climate in industry remained stable at 101, slightly above its long-term average, with stronger past and expected production offsetting weaker overall order books. Construction was also unchanged at 96, as improved views of past activity offset weaker business outlooks. The employment climate fell one point to 98.

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.