FR Business Climate Down Sharply Amid Second Lockdown

NOV BUS CLIM INDICATOR 79; OCT 90

NOV MFG SENTIMENT 92; OCT 93

NOV SERVICES SENTIMENT 77; OCT 89

• French business climate plunged 11pt to 79 in Nov amid the second wave, falling short of market forecasts (BBG: 84) and recording the lowest level since June.
• Retail trade and service business climate took the largest hit of the newly introduced second lockdown with retail trade sentiment plummeting 23pt to 72, while service sector business confidence dropped 12pt to 77.
• Both indicators declined to their lowest levels since May
• Sub-sectors particularly affected by the lockdown such as accommodation and catering, firms specialized retail trade, automobile trade and repair saw the largest drops, while food retail trade in food offset some these falls.
• Manufacturing sentiment eased as well in Nov, however the indicator only fell by 2pt to a three-month low of 92.
• Employment climate eased further in Nov, falling 6pt to 83 and registering far below the pre-crisis level of 105.
• Employment prospects declined markedly in the retail trade and service sector and eased slightly in the industrial sector, while construction saw employment prospects holding up.