PARIS, March 26 (Xinhua) -- French business leaders were more pessimistic about business climate in March with the monthly sentiment indicator tumbling by 10 points, the biggest decline since records began in 1980, official data released on Thursday showed.

The business climate composite indicator, compiled from the answers of business managers in the main market sectors, stood at 95, compared to 105 points registered in February, national statistics institute Insee noted.

"The French business climate has fallen steeply and in an unprecedented way," it said in its monthly economic report.

Compared to February, the business climate in services and retail are the worst-affected activities by the coronavirus epidemic. They dropped by 14 points and 13 points, respectively. Manufacturing has lost three points at 98, while climate in building construction was stable at 112 points.

In March, employment climate composite indicator has lost nine points to 96, its biggest fall since the records started in 1991, according to Insee.

The national stats agency estimated that French economic activity and household spending were running at about 65 percent of normal levels due to the coronavirus outbreak.

Early this month, the government ordered the closure of all cinemas, theatres, cafes, bars and restaurants. It toughened curbs on public gatherings, suspended flights, reduced train traffic and urged people to stay at home.

On March 17, tougher instruction to limit gatherings and curb movement came into effect. Only journeys for reasons of work, health needs or shopping of necessities are allowed. Meanwhile outdoor gatherings are banned. Parks are closed and curfew was imposed in several cities.

Insee said it was too early to estimate how deep the downturn would be. But it expected that each month of confinement would cut economic growth by 12 percentage points on a quarterly basis and 3 percentage points on an annual basis.

"Following these instantaneous effects, it is not easy to deduce quarterly or annual forecasts of French GDP. Indeed, the GDP evolution is very closely linked to the scenario of an exit from the sanitary crisis," it said.

In its updated budget bill, the government said it expects GDP to contract one percent this year, abandoning the 1.3 percent growth target. Enditem

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