Despite budget uncertainty, the business climate began to improve in November. The indicator measuring it, calculated based on responses collected from business leaders, stood at 98 and is close to the long-term average of 100, INSEE said Friday.
The business climate especially benefited from the recovery of the services sector, gaining three points, reflecting an improvement in business leaders’ feelings about expected demand, INSEE said.
This company continues to operate in the construction and wholesale trade sectors, but has returned to industry and retail trade, explained INSEE. The downturn in the industry is due to greater concerns among business leaders regarding production prospects and order books.
Decline in the retail sector
The indicator measuring the business climate in this sector has lost three points and is below the long-term average. Compared with October, business leaders have changed their opinion about past activities, but are less confident about their future activities.
The business climate also experienced a decline in retail trade and car repair, although in different ways. Therefore, the figure increased significantly in retail trade (excluding cars), but fell again in car trade and repairs, INSEE detailed.
If the employment climate benefits from improvement and rises one point in a month to 96, then the figure would still be below the long-term average of 100, which is characterized by gloomy employment conditions.
Concerns about taxes were voted on in the Assembly
The bosses are worried about the taxes decided in the National Assembly. Representatives of Medef, industry and financial markets all expressed their confusion over the uncertainty over the outcome of the parliamentary debate as well as the contents of the future budget.
Alexandre Saubot, president of France Industrie, is concerned about the tax project “delusional”. Jacques Creyssel for Medef regrets this “political situation and tax decisions” causes SMEs to postpone their investments, “very serious crisis symptoms”.
Prime Minister Sébastien Lecornu asked them to be reassured because the tax had been voted on in the first reading in the Assembly “will never have an app”recalled referring the matter to the Council of State, and arguing that Zucman’s tax on high wealth did not appear in the draft budget.
