According to the business leaders surveyed (approximately 8,500 companies and establishments surveyed between 27 May and 3 June 2026), activity slowed sharply in the manufacturing sector in May, while it contracted in market services and declined slightly in construction. As many business leaders pointed out, part of this slowdown could be due to the timing of bank holidays, which has been particularly conducive to taking long weekends this year.
In industry, the slowdown mainly concerned sectors facing sluggish demand, whilst activity in the defence and aeronautics sectors remained strong. In market services, activity declined almost across the board, despite the resilience of accommodation and food services, publishing and certain business services. In construction, activity remained affected by the persistent weakness in new-builds.
Business leaders nevertheless expect activity in June to improve in manufacturing and market services and stabilise in the construction sector.
Order books were still perceived as weak in the manufacturing sector. The uncertainty felt by businesses continued to ease following the rise observed at the outbreak of the conflict in the Middle East.
Cash positions were still considered broadly close to normal, albeit with marked sectoral disparities. Supply constraints remained limited, whilst raw material and energy prices continued to weigh on production costs. Against this backdrop, selling prices continued to rise, albeit at a slower pace than in April.
Based on the survey results, supplemented by other indicators, we estimate that GDP will remain stable in the second quarter.
