Business climate in France remains stable in January 2024 compared to December 2023. Most business leaders say they are confident, thus confirming the improvement recorded in December. On the other hand, the employment environment seems to be disrupted and deteriorating at the beginning of the new year.
It is stability, in January 2024, for the business climate in France, which seems to be maintained with the same confidence as last December. On the other hand, the employment environment fell below its long-term average for the first time since April 2021. “At 98, the index that summarizes it, calculated from the responses of business leaders in key business sectors of activity, remains slightly below its long-term average (100)”
The National Institute of Statistics and Economic Studies (Insee) comments in its latest report.“This stability results from paradoxical development”, The report notes that estimate “If the economic situation is improving in construction, services and retail trade, it is deteriorating in wholesale trade”.
In detail, there was a marked rebound in construction (to 103 after 101 in December). “Under the influence of an increase in the balance of opinion on planned activity” In particular, while in the wholesale trade sector, the index saw a decline (from 91 to 90). “Because of the balance of opinion on delivery from abroad”
. In services, the business climate is improving slightly (101 after 100), driven by a balance of opinion regarding past activity and forecast demand. Finally, in industry, the index held steady at 99, below its long-term average for the fifth month in a row.So overall, despite some developments that are not the most positive, the business environment does not give cause for concern. But we cannot claim the same for the employment environment which has now fallen below its long-term average for the first time since April 2021.
Thus, in January 2024, the artificial employment climate indicator shows a decline. At 99, it loses one point compared to December 2023, INSEE notes, and is below its long-term average (100). This is a degradation result “Balance of opinion on the future evolution of the workforce particularly in services (excluding temporary employment agencies)
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