Business environment is deteriorating, employment is recovering

According to the INSEE study published this Thursday, February 22, the business climate in France in February 2024 deteriorated compared to the previous month. For its part, the employment climate improved, rising two points in the same month.

A study by the National Institute of Statistics and Economic Studies showed that in February, “ The business climate in France worsened slightly compared to January ” INSEE is based on an indicator calculated from the responses of business leaders in the main business sectors of activity. Therefore this indicator loses one point in the current month.

Calculated at 98, the indicator is experiencing deterioration that “ Mainly in services and retail trade (including automobile trade and repair) as a result of worsening economic conditions », indicates INSEE.

In more detail, certain areas are penalized more than others. Thus, “The In retail trade (including automobile trade and repair), the business climate is clearly darkening after two months of improvement, particularly penalized by the balance of opinion on general business prospects, past sales and order intentions. », underlines the report.

The employment climate is turning around

A deterioration in the business environment also affects the service sector in which “ The business environment is also deteriorating under the impact of reduced sales on forecast activity and demand

», while the construction sector is experiencing stagnation. Its index is above its average.

However, the industrial sector is an exception to the rule for the month of February. ” The business climate improved marginally and reverted to its average due to a good balance of opinion on planned production and order book, both global and overseas. », indicates INSEE. Moreover, unlike the previous month, the employment environment has improved. That’s a little more favorable, according to this study, which explains that “en February 2024, artificial employment climate indicators rebound “

“There is 101, it’s up two points from January and returns exactly above its long-term average (100). » notes INSEE which emphasizes that “ This improvement results from a clear recovery in the balance of opinion regarding the future evolution of the workforce in services (excluding temporary employment agencies), although this same balance in the manufacturing industry is partially offset by a decline in their recent growth in retail.

“