France’s business climate indicator fell -0.7 pts to 95.8 in May, remaining below its long-term average.

• The services index dropped -2.9 pts to 95.2, with sharp declines in expected activity, demand, and past activity; expected workforce size fell to its lowest since April 2013.
• The manufacturing index declined -2.9 pts to 96.9 (vs 99 expected), driven by lower personal production prospects and global order books; supply-side and demand-side constraints slightly eased.
• The wholesale trade index edged up 0.3 pts to 94.7, as past sales improved but received merchandise weakened.
• The construction index rebounded 3.3 pts to 100.6, led by a strong improvement in future activity expectations—the largest jump since January 2004 (ex-COVID).
• Retail trade rose 2.8 pts to 97.7, recovering partially from last month’s -5 pt drop, with improved business outlook and expected workforce size.