France Business Climate Improves in October

France’s overall business climate rose to 97 in October 2026, above expectations and September’s 96, and moving closer to its long-term average of 100. The improvement was driven mainly by manufacturing, where the indicator climbed four points to 105, its highest level among the main sectors, supported by stronger global and foreign order books. The services climate also edged up to 99 from 98, moving closer to its long-term average. Meanwhile, retail trade deteriorated, with the indicator falling three points to 93, further below its long-term average, mainly due to a sharp decline in general business outlook. Construction weakened as well, with the indicator slipping one point to 95 as contractors’ views of past activity worsened despite improved expectations for future activity. The employment climate fell three points to 95.

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.