Paris, France – In May 2023, the business climate in the retail trade and trade and repair of motor vehicles sector experienced a slight deterioration, according to the latest monthly survey. The indicator that synthesizes the business climate dropped by one point, settling at 100, which is consistent with its long-term average. The decline can be attributed primarily to a decrease in the balance of opinion regarding ordering intentions and recent changes in workforce size.
The survey, conducted by the French National Institute of Statistics and Economic Studies (INSEE), revealed a retreat in the balances of opinion related to ordering intentions and past sales, which fell below their long-term averages. Additionally, the balance of opinion on expected selling prices declined sharply for the second consecutive month, although it remained significantly higher than the long-term average. Similarly, the balance of opinion on expected sales decreased in both the retail trade sector (excluding trade and repair of motor vehicles) and the trade and repair of motor vehicles sector.
On a positive note, the balance of opinion on the general business outlook increased and moved further away from the average level. The survey also indicated that fewer business managers considered the evolution of their business situation difficult to forecast compared to the previous month.
Regarding the workforce size, the balance of opinion associated with the recent change in workforce size decreased significantly, while the balance related to the expected change showed a slight rebound. Both balances remained below their respective averages. The balance associated with the current level of stocks slightly improved but remained below the average.
The revisions made to the survey results showed an upward adjustment of one point for the business climate in retail trade (including trade and repair of motor vehicles) for April 2023. This revision was primarily due to the inclusion of late responses from companies.
The monthly survey in retail trade and trade and repair of motor vehicles conducted by INSEE provides valuable insights into the business climate, offering an overview of trends and sentiments in the sector.