This deterioration is mainly due to industry and commerce, while services are holding up better and construction is not affected.
The business climate hasclearly» degraded in March, while remaining above its long-term average, INSEE reported on Thursday. This deterioration is mainly due to industry and commerce, while services are resisting better and construction is not affected, specifies the National Institute of Statistics. The composite indicator that measures the balance of opinion of business leaders surveyed by INSEE rose from 113 in February (figure revised upwards) to 107 in March.
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In the retail trade, the fall is particularly pronounced, the indicator falling in one month from 107 to 99 and thus falling below the long-term average which is 100.In industry, the business climate is rapidly deteriorating“, going from 112 to 106, according to the press release from INSEE. For this sector, the institute notes in particular a rapid increase in theexpected sales price trend” as well as “the economic uncertainty feltagainst the background of the war in Ukraine.
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The expected trend in the workforce in industry is also down, even if for the economy as a whole, the employment climate remains stable at a high level, well above the long-term average. In wholesale trade,the general outlook for activity falls sharplywith a particular drop in the balances of opinion relating to deliveries received from abroad. Finally, in construction, the business climate is stable at a high level, even if the perceived economic uncertainty is increasing, and the bottlenecks of supply difficulties and the lack of personnel have increased.