Thursday, 20 January, 2022

Covid: economic activity threatened with relapse


The morale of business leaders fell again in October due to health restrictions, INSEE said Thursday. This is the first decline since the spring. The decline is especially noticeable in services, mainly affected by the entry into force of the curfew.

INSEE noted a deterioration in the business climate in October.

While waiting to know if the curfew will curb the spread of Covid-19, its effects on activity are already being felt, with, as a result, a probable decline in GDP in the fourth quarter. The business climate indicator calculated by INSEE fell 2 points in October, returning to its August level at 90.

Unsurprisingly, the decline is very marked in services, more particularly in accommodation and catering but also in road transport of goods or real estate, while it has stopped improving in industry. “The outlook for activity darkens compared to last month”, underlines INSEE.

The morale of business leaders fell again in October due to health restrictions, INSEE said Thursday. This is the first decline since the spring. The decline is especially noticeable in services, mainly affected by the entry into force of the curfew.

INSEE noted a deterioration in the business climate in October.

While waiting to know if the curfew will curb the spread of Covid-19, its effects on activity are already being felt, with, as a result, a probable decline in GDP in the fourth quarter. The business climate indicator calculated by INSEE fell 2 points in October, returning to its August level at 90.

Unsurprisingly, the decline is very marked in services, more particularly in accommodation and catering but also in road transport of goods or real estate, while it has stopped improving in industry. “The outlook for activity darkens compared to last month”, underlines INSEE.