FR Business Climate Surged in March

MAR BUS CLIM INDICATOR 97; FEB 90

MAR MFG SENTIMENT 98; FEB 98r

MAR SERVICES SENTIMENT 95; FEB 89r

• French business climate jumped to 97 in Mar, up 7pt from 90 recorded in Feb and coming in stronger than markets expected (BBG: 91).
• The headline business climate indicator rose to the highest level since the start of the health crisis, shifting towards its long-term average (100)
• Mar's uptick was driven by a solid rebound in service business climate, rising 6pt to 95, its highest level since Sep 2020.
• Similarly, retail trade business climate increased 5pt to a five-month high of 94.
• Business climate in the manufacturing sector remained at Feb's upward revised level of 98 in Mar.
• Employment climate ticked up 6pt to 92 in Mar, marking the highest level since Sep 2020.
• Nevertheless, all indicators continue to post readings below the long-term averages.