23 November 2017
2017- n° 305In November 2017, the business climate improves markedly in the building construction
industry Monthly survey of building - November 2017
According to the business managers in the building construction industry surveyed in November 2017, the business climate has improved markedly. After increasing by one point in October, the composite indicator has risen by two points and has reached 107, its highest level since October 2008, well above its long-term average (100).
According to the business managers in the building construction industry surveyed in November 2017, the business climate has improved markedly. After increasing by one point in October, the composite indicator has risen by two points and has reached 107, its highest level since October 2008, 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). The uncertainty area is between –0.3 and +0.3
Business managers are much more optimistic about their activity
In November 2017, many more business managers than in the previous month have indicated an increase in their activity over the last three months. The corresponding balance has bounced back and stands far above its long-term average. Likewise, the balance of opinion on expected activity has increased sharply, exceeding its long-term average even more.
graphiqueGraph3 – Activity tendency in building construction
tableauTable1 – Building industry economic outlook
| Mean* | Aug. 17 | Sept. 17 | Oct. 17 | Nov. 17 | |
|---|---|---|---|---|---|
| Composite indicator | 100 | 104 | 104 | 105 | 107 |
| Past activity | –4 | 2 | 7 | 2 | 9 |
| Expected activity | –6 | 12 | 9 | 8 | 19 |
| Gen. business outlook | –18 | 13 | |||
| Past employment | –6 | –8 | –7 | –5 | –3 |
| Expected employment | –5 | 3 | 4 | 4 | 1 |
| Opinion on order books | –24 | –20 | –22 | –13 | –14 |
| Order books (in month) | 5.5 | 7.3 | 7.3 | 7.5 | 7.4 |
| Production capacity utilisation rate | 88.4 | 88.4 | 88.1 | 88.7 | 88.7 |
| Obstacles to production increase (in %) | 32 | 30 | 27 | 32 | 34 |
| - Because of workforce shortage (in %) | 13.7 | 9.7 | 8.8 | 9.8 | 10.0 |
| Recruiting problems (in %) | 57 | 58 | |||
| Expected prices | –15 | –8 | –6 | –3 | –5 |
| Cash-flow position | –10 | –7 | |||
| Repayment period | 29 | 30 |
- * 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
Slightly more business managers report an increase in their past staff size
In November 2017, slightly more business managers than in October have reported an increase in their staff size over the last three months. The corresponding balance has increased slightly and stands above its long-term average. However, the balance of opinion on expected staff size has fallen back while remaining well above its long-term average.
graphiqueGraph4 – Workforce size tendency in building construction
Order books remain judged well filled
In November 2017, almost as many business managers as in the previous month consider that their order books are well filled for the period. After reaching a level unseen since September 2008, the corresponding balance of opinion is virtually stable well above its long-term average. With their present staff size, business managers consider that their order books provide 7.4 months of work, a level slighlty lower than last month but clearly above its long-term average (5.5 months).
graphiqueGraph5 – Order books
Production capacity remains more used than on average
After bouncing back in the previous month, the production capacity utilisation rate is stable in November 2017. At 88,7%, it stands above its long-term average (88.4%) for the second consecutive month. At the same time, 34% of business managers have reported production bottlenecks, slightly more than last month and than in long-term average.
graphiqueGraph6 – Production capacity utilisation rate
Fewer business managers plan to increase their prices
In November 2017, fewer business managers than in October have indicated that they would increase their prices over the next three months. The corresponding balance has fallen back slightly but remains well above its long-term average.
Documentation
Abbreviated methodology (pdf,177 Ko)
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