Survey Shows Services Sector Business Climate in France Deteriorates in April 2023

According to the monthly survey of services conducted in France in April 2023, business managers reported a decline in the business climate in the services sector. The business climate indicator dropped by two points to 103, mainly due to the decline in forward-looking balances of opinion on activity, demand, and workforce size. The balance of opinion on activity over the past three months also decreased slightly but remains just above average. Regarding employment, the balance of opinion on the expected workforce size fell back sharply, but the balance on the change in the workforce size over the last three months rebounded and got back above average. 56% of the business managers reported difficulties in recruitment, a high but decreasing share. The quarterly balance of opinion on expected investments for the next three months has fallen back sharply and has moved below average.