French architecture in France

France Business Confidence July 2020

France: Business sentiment improves again in July but remains downbeat

The French Statistical Institute’s (INSEE) business climate indicator for the manufacturing sector rose to 82 in July from 77 in June. The index thus continued to improve for the third consecutive month. Nevertheless, it still remained below the 100-threshold, its long-term average.

Manufacturers’ personal production expectations rose further in July, after turning positive in June. Moreover, general production expectations in the sector turned less negative for the third consecutive month. Turning to staffing, employment intentions gained ground but remained pessimistic. In terms of demand, perceptions of new orders turned slightly less negative, but remained deeply entrenched in negative territory. Perspectives on new export orders, meanwhile, remained downbeat.

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