On the sidelines of Emmanuel Macron’s television intervention on Thursday on the subject of Ukraine, an INSEE study shows the impact of the international situation on French industry. A significant gap is widening between branches of activity.
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In its latest economic report, Thursday March 14, INSEE confirms what the Banque de France says: recovery is slow to come for French growth, see you in 2025-2026. But the National Institute of Statistics supports its analysis with a striking observation on the business climate: the divisions between our different sectors of production have never been so significant in… 30 years – excluding periods of health crisis.
The business climate is based on morale and management’s analysis of the situation. This climate is increasingly heterogeneous, for an understandable reason: since the outbreak of the war in Ukraine, sectors have been exposed in different ways to the surge in the price of energy and raw materials. INSEE shows the different impact depending on the sector. If he saved aeronautics, which is recovering well, energy-intensive branches such as the metallurgy, chemicals and paper sectors, have suffered more from the rise in energy prices and are depressed.
French industry rather resilient overall
The aeronautics industry is the one that absorbs shocks more easily. If production in this branch remains a quarter lower than before Covid in 2019, order books are above average. The shock was less for French aircraft manufacturers than for the Germans faced with greater variations in energy prices, due to their political choice to phase out nuclear power. We note a special mention for French manufacturers of aircraft engines like Safran, for example.
Conclusion: in the tense international context, even with the disparities between sectors of activity, French industry shows itself resilient with, always, the delicate question of our productivity. The cost of labor remains expensive for companies which decide to maintain employment, despite the variation in order books.
