24 August 2017
2017- n° 218In August 2017, the economic climate is a little less favourable in the building construction
industry Monthly survey of building - August 2017
According to the business managers in the building construction industry surveyed in August 2017, the business climate is a little less favourable than last month. After three consecutive months of increase, the composite indicator has decreased by one point. At 104, it remains however well above its long-term average (100).
According to the business managers in the building construction industry surveyed in August 2017, the business climate is a little less favourable than last month. After three consecutive months of increase, the composite indicator has decreased by one point. At 104, it remains however well above its long-term average (100).
graphiqueGraph1 – Business climate composite indicator
The turning point indicator remains in the favourable outlook zone.
graphiqueGraph2 – Turning-point indicator
- Note: close to 1 (respectively –1), it indicates a favourable climate (respectively unfavourable). Between +0.3 and –0.3: uncertainty area
Fewer business managers have indicated an increase in their past activity
In August 2017, again fewer more business managers than in the previous month have indicated an increase in their past activity. The corresponding balance remains however well above its long-term average. Otherwise, the balance of opinion on expected activity is stable, also well above its long-term average.
graphiqueGraph3 – Activity tendency in building construction
tableauTable1 – Building industry economic outlook
| Mean* | May 17 | June 17 | July 17 | Aug. 17 | |
|---|---|---|---|---|---|
| Composite indicator | 100 | 103 | 104 | 105 | 104 |
| Past activity | –4 | 5 | 10 | 5 | 2 |
| Expected activity | –6 | 1 | 3 | 11 | 11 |
| Gen. business outlook | –18 | 13 | |||
| Past employment | –6 | –6 | –5 | –2 | –6 |
| Expected employment | –5 | –1 | 3 | 6 | 3 |
| Opinion on order books | –24 | –28 | –24 | –21 | –20 |
| Order books (in month) | 5.5 | 7.1 | 7.2 | 7.4 | 7.4 |
| Production capacity utilisation rate | 88.4 | 87.8 | 87.9 | 88.5 | 88.2 |
| Obstacles to production increase (in %) | 32 | 29 | 29 | 31 | 31 |
| - Because of workforce shortage (in %) | 13.8 | 7.3 | 7.1 | 9.4 | 9.5 |
| Recruiting problems (in %) | 57 | 55 | |||
| Expected prices | –15 | –16 | –13 | –6 | –9 |
| Cash-flow position | –10 | –9 | |||
| Repayment period | 29 | 20 |
- * Mean since April 1975 for the composite indicator and since September 1993 for the balances of opinion.
- Source: INSEE, French business survey in the building industry
Fewer business managers plan to increase their staff size
In August 2017, significantly fewer business managers than in July have indicated an increase in their staff size over the last three months. The corresponding balance has returned to its long-term average. Likewise, fewer of them plan to recruit: the balance on expected staff size has fallen back sharply for the first time since March 2017. It remains however above its long-term average.
graphiqueGraph4 – Workforce size tendency in building construction
Order books remain well filled
In August 2017, a little more business managers than in July consider that their order books are well filled for the period. The corresponding balance of opinion has recovered regularly for two years and a half and has exceeded its long-term average for two months. With their present staff size, business managers consider that their order books provide 7.4 months of work, the same level as last month and clearly higher than its long-term average (5.5 months).
graphiqueGraph5 – Order books
Production capacity is slightly less used
After five months of steady increase, the production capacity utilisation rate has decreased slightly in August 2017. It stands at 88.2% and has returned below its long-term average (88.4%). Among business managers, 31% have reported production bottlenecks, the same share as last month and a shade below its long-term average.
graphiqueGraph6 – Production capacity utilisation rate
Fewer business managers plan to increase their prices
In August 2017, fewer business managers than in July have indicated that they would increase their prices over the next three months. The corresponding balance remains however well above its long term-average.
Documentation
Abbreviated methodology (pdf,177 Ko)
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