Business sentiment on public works activity and order books deteriorated further in France in October, according to the quarterly survey published by the National Institute of Statistics and Economic Studies (Insee) on 23 October. The balance of opinion on order books fell to minus 53, a level Insee said had not been seen since April 2016. The indicator measures the balance between positive and negative survey responses after seasonal adjustment; it is not a measure of contract volume or the euro value of outstanding orders.

The balance on activity over the previous three months continued a decline that began in January and reached minus 45. It stood at minus 56 for public-sector customers and minus 39 for private-sector customers, both well below their long-term averages. Expectations for activity over the next three months edged down to minus 44, pointing to slightly greater pessimism than in July. The split by customer type was mixed: the public-customer balance rose modestly to minus 50 after six consecutive quarterly declines, while the private-customer balance fell for a fourth quarter to minus 38. Both remained below their respective long-term averages.

The survey also showed demand constraints becoming more common as reported labour shortages eased. In October, 64% of firms cited insufficient demand as a limiting factor, up from 56% in July and 53% in April. The share citing a shortage of personnel fell to 12%, compared with 20% in July and 21% in April. The economic-uncertainty indicator rose to 53, following 45 in July, 41 in April and 36 in January. These are survey-based indicators of managers’ assessments, not percentage changes in sector output.

The balance of expected employment improved to minus 17 from minus 19 in July. That does not by itself show that labour demand has risen or that firms are hiring. In the same survey, the indicator for payment delays eased to 28 from 33 in July, while the share reporting adverse weather as a constraint dropped to 11% from 33%. Insee’s survey tracks company perceptions and near-term expectations. Assessing contract awards, turnover or the value of public investment would require separate administrative or company data; the release does not provide those figures.