Banque de France Reports Economic Outlook for June 2025
Monthly economic survey reveals cautious optimism despite recent downturns.
Key Points
- • 8,500 business leaders surveyed between May 27 - June 4, 2025.
- • May 2025 saw significant activity decline due to holidays and closures.
- • Companies anticipate a recovery, particularly in the industrial sector for June 2025.
- • Concerns regarding potential U.S. tariff increases affect several sectors.
In its latest monthly economic survey released on June 11, 2025, the Banque de France revealed notable trends regarding the French economy. Conducted among approximately 8,500 business leaders from May 27 to June 4, the survey indicated a significant decline in economic activity for May, primarily attributed to public holidays and business closures during that period.
Nonetheless, there is a sense of optimism as companies anticipate a rebound in economic activity in June, particularly in the industrial sector, which is expected to experience the most considerable improvement. Notably, challenges persist in the non-aerospace manufacturing sector, where order books remain low. Additionally, the survey shed light on business leaders' worries about potential increases in U.S. tariffs, which could adversely affect various sectors, including food and beverages, chemicals, and luxury goods.
Stability in raw material prices was reported, with minimal supply issues except for transportation materials. Furthermore, recruitment challenges have remained consistently high, with 19% of businesses reporting difficulties in hiring. The Banque de France projects that economic growth for Q2 2025 will be modest at an estimated 0.1%, mirroring the stagnation observed in Q1.