In France the Business Climate is Breaking Records

In October, the morale of business leaders returned to its record level last June at 113, never equaled since 2007. However, the proportion of businesses (45%) expressing supply difficulties has never been higher since. 30 years. The prolongation of the rise in energy prices before winter could weigh on the recovery in the months to come.

The economic recovery continues. After a chaotic start to the year, the business climate reached a new high in October. According to the latest indicators unveiled by INSEE this Thursday, October 21, the confidence of managers climbed three points between September and October, from 110 to 113.4. It thus returns to its record level of June 2021 when the health measures were lifted. The business climate had not returned to such a level since the financial crisis of 2007. Behind this surprising euphoria, it should be remembered that the index had plunged to 90 in October 2020 on the eve of a second confinement particularly feared by the people and businesses.

“Overall, the rise in the business climate indicator is very good news, as it indicates that the French economy is starting the fourth quarter in a more positive way than expected. Despite the growing difficulties, the economic recovery is still strong. This. Economic growth will probably be strong in the third quarter and dynamic at the start of the fourth quarter. Nevertheless, the peak has probably passed and we expect a deterioration in the business climate from November “, explains the economist of ‘ING Charlotte de Montpellier in a note.

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