FR Business Climate Bounced Back in Dec

DEC BUS CLIM INDICATOR 91; NOV 79

DEC MFG SENTIMENT 93; NOV 92

DEC SERVICES SENTIMENT 90; NOV 78

• French business climate rebounded sharply in Dec, rising by 12pt to 91and beating market forecasts looking for a smaller uptick to 82.
• The index bounced back to the level seen before the second lockdown, but remains below the long-term average and below pre-pandemic levels.
• Dec's uptick was led by a sharp increase in service and retail trade sentiment, both plummeted in Nov amid the second lockdown and bounced back sharply in Dec
• Service sector business climate gained 12pt and recorded a 3-month high of 90 in Dec, while retail trade sentiment jumped 23pt to 95, offsetting the losses seen in Nov.
• Business climate in the manufacturing sector ticked up 1tp to 93 in Dec, following a decline to 92.
• The indicator remained relatively stable during the pandemic as social distancing measures weigh more on the service and retail trade sector than on the industrial sector.
• Employment climate edged up 2pt to 86 in Dec after falling to 84 in Nov and remains well below Feb's pre-crisis level as well as below the long-term average.