The Banque de France recently released the results of its monthly business survey for November 2024. This survey provides insights into the current state of the French economy based on data collected from approximately 8,500 companies and establishments.
In October, the survey found that activity in the industry sector experienced growth, particularly in agri-food and capital goods. However, market services saw slower growth. The construction sector also saw an increase in activity due to the rescheduling of building projects that were delayed during the Olympic Games.
Looking ahead to November, the survey predicts little change in activity for both industry and market services, with a decline expected in the construction sector. Order books in most industrial sectors were reported to be weak, except for aeronautics. This lack of visibility on future activity was attributed to the overall uncertainty in the domestic political landscape, fiscal debates, and international events such as the upcoming US elections.
Additionally, selling prices in market services continued to stabilize, indicating that inflation is expected to remain under control. Recruitment difficulties decreased across all sectors, with only 31% of companies reporting challenges in hiring compared to 35% in September.
Based on the survey results and other economic indicators, it is estimated that underlying growth will continue its slightly positive trend in the fourth quarter. This would result in GDP remaining relatively stable compared to the previous quarter, factoring in the negative impact of the delayed building projects from the Olympics.
Overall, the survey highlights the challenges and opportunities facing the French economy in the coming months. The Banque de France’s monthly business survey provides valuable insights for policymakers, businesses, and investors to understand the current economic climate and make informed decisions.
For more detailed information and access to the full report, you can visit the Banque de France website and explore previous survey results to track economic trends over time.