• July business confidence 97 vs 95 expected
• Prior 94; revised to 95

The French business climate brightened a little in July, keeping with the rebound in June to move closer to the long-term average of 100. As a reminder, the last time the French business confidence index touched that level was all the way back in May 2024.

The latest reading comes amid an improvement in the business climate for both the manufacturing and services sectors, as well as in retail trade. The more detailed breakdown for the report is as per the following:

• Manufacturing confidence 101 vs 100 prior
• Services confidence 98 vs 96 prior
• Retail trade 99 vs 91 prior
• Wholesale trade 95 vs 97 prior
• Employment 98 vs 98 prior

Overall, it points to a modest pick up in overall business sentiment to start the summer. However, key risks remain as energy prices are starting to ramp higher again and that will only make things more complicated in the months ahead. That especially if the Middle East conflict continues to drag on for longer and also see a further disruption to shipping conditions in the Red Sea.

This article was written by Justin Low at investinglive.com.