France business climate indicator unchanged

France’s business climate indicator held steady at 96 in August 2025, unchanged from July and remaining below the long-term average of 100, underscoring persistent weakness in private-sector sentiment.

Conditions diverged notably across industries. Retail trade slumped sharply to 92 from 99, the lowest reading in more than two years, as collapsing order intentions and a more negative view of the general outlook weighed heavily on confidence.

Services sentiment also edged down to 95 from 96, marking the fourteenth consecutive month below average, with managers reporting increased pessimism over their own business prospects.

In manufacturing, morale was stable at 96, still short of its historical norm, though a notable reduction in finished-goods inventories hinted at slightly improving balance in supply and demand. By contrast, construction confidence showed a modest rebound to 98 from 96, buoyed by stronger activity expectations and higher capacity utilization.

Meanwhile, the employment climate slipped further to 95 from 96, extending its run below average since mid-2024. The decline was driven by weaker assessments of staffing needs in services excluding temporary work, suggesting labor demand remains fragile despite some resilience in other sectors.