France's business climate drops to lowest since July

France's business climate indicator fell to 94 in December 2024, down from 96 in November, marking its lowest point since July.

France's business climate drops to lowest since July

The decline was primarily driven by weakening expectations regarding future demand and business activity. Sentiment across various sectors showed notable deterioration, including retail (96, down from 98 in November), services (96, down from 98), and construction (98, down from 99), with construction confidence reaching its lowest level since July 2020. This drop reflects growing concerns in the sector amid broader economic challenges. Meanwhile, the business climate in the manufacturing sector remained steady at 97, although it remained below the long-term average of 100, indicating continued cautiousness in the industry.

France's business sentiment declines amid economic uncertainty

The overall decline in sentiment suggests that businesses in France are increasingly uncertain about the near-term economic outlook, with several sectors facing heightened risks and challenges.