New improvement in the business climate in July

New improvement in the business climate in July

Wholesaling, construction and services sectors are progressing while the industry remains stable and the employment climate is down slightly.

The business climate improved in July for the third consecutive month, reaching a new level for six years, with a noticeable improvement in the wholesale sector, said Tuesday INSEE .

Wholesalers “optimistic”. The indicator, calculated from the responses of business leaders in the main sectors of activity, was 108 points against 107 in June, well above its long-term average, says the national institute statistics in a statement.

In the wholesale trade, the index gained four points to 109 points, the highest level since November 2007. According to INSEE, wholesalers remain “optimistic” for the next months, with total orders intentions rise.

Well-filled order books. In the building, the indicator is up one point to 105 points. “Entrepreneurs are more likely than in June to feel that their order books are well stocked for the period,” says the institute. These orders, given the workforce, provide 7.3 months of work to companies in the sector, he says.

Progress of a point in the services. In services, the indicator also increased by one point to 104 points. The business climate is “high in road transport” but “falls back to its average level in accommodation and catering” and “oscillates around its average” in information-communication, details INSEE.

A stable industry. Finally, in the manufacturing industry, the index remains stable, but at a level well above its long-term average (109 points). “The opinion of industry on the past evolution of global and foreign demand is improving frankly,” notes the public body.

An employment climate slightly down. Despite this overall improvement, the employment climate is declining slightly, “mainly due to services other than temporary” and “without reversing the upward trend since early 2015,” according to INSEE. The indicator that synthesizes it falls back by two points, to 107 points, ie its May 2017 level

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