France’s business climate stable, manufacturing weakens

France's business climate indicator remained unchanged at 95 in January 2025, holding steady from the previous month and at its lowest since July last year.

France’s business climate stable, manufacturing weakens

The reading continued to fall below the long-term average of 100, reflecting a cautious outlook. Business sentiment was stable across most sectors, with construction at 98, services at 96, and retail at 97. However, the manufacturing sector experienced a decline, with its business climate dropping to a three-month low of 95, down from 97 in December. On a more positive note, the employment climate indicator increased slightly to 98, up by one point, and was approaching its long-term average of 100.

Improved employment outlook boosts services sector

This improvement was primarily driven by a more optimistic outlook for future employment in the services sector, excluding temporary work.