France’s business climate indicator held steady at 96 in August 2025, unchanged from July and below the long-term average of 100. Sentiment diverged across sectors: retail trade slumped sharply to 92 from 99, the weakest reading in over two years, dragged by collapsing order intentions and a poorer general outlook. Services confidence slipped to 95 from 96, marking a 14-month stretch below average, as managers grew more pessimistic on their personal outlook. Manufacturing morale was stable at 96, though still below its norm, with only finished-goods inventories showing a notable drop. In contrast, construction confidence improved to 98 from 96, lifted by brighter activity prospects and higher capacity use. Meanwhile, the employment climate softened to 95 from 96, extending its run below average since mid-2024, driven by weaker staff assessments in services excluding temporary work.