2026.06.2307:10:40UTC+00France Business Climate Slightly Improves

France’s overall business climate improved slightly in June 2026, rising to 94 from 93 in May, but remained well below its long-term average of 100. Retail trade showed a modest rebound, with its indicator increasing to 90 from 89, supported by a small uptick in ordering intentions and in the overall business outlook. The services sector remained stable at 93, indicating persistently subdued conditions across all major sub-sectors.

By contrast, sentiment in manufacturing deteriorated, with the indicator slipping to 100 from 102 as assessments of past production worsened and production expectations continued to weaken. Conditions in building construction also softened, with the indicator easing to 96 from 97, reflecting more negative views of recent activity despite brighter expectations for future activity.

At the same time, the employment climate worsened further, falling to 89 from 92—its lowest level since June 2013, excluding the health crisis period. Firms in both services and retail trade reported weaker trends in their workforce levels and more cautious hiring intentions.