26 March 2019

2019- n° 77

In March 2019, the business climate is stable in services Monthly survey of services - March 2019

According to business managers surveyed in March 2019, the business climate in services is stable, at 103. The business climate composite indicator therefore remains above its long-term average (100).

Otherwise, the indicator of February 2019 has been revised upwards by one point because of late businesses’ answers that have been taken into account.

The balances of opinion on expected demand and expected activity have weakened again and are close to their long-term average. In contrast, the balance on past activity has strengthened and remains above its average. That on the general outlook for activity, which relates the opinion of business leaders on their own sector, is virtually stable, above its average level.

The balance on past employment has slightly decreased to its average. That on expected employment has grown a little, in particular due to services except temporary work agencies; it remains above its long-term average.

The balances on selling prices have increased and stand above their average.

The balance on past investment has bounced back, moving to its average. That on expected investment is stable, sharply above its average, at its highest level since June 2011.

In March 2019, the turning point indicator remains in the area indicating a unfavourable short-term economic situation.

The business climate is stable in road freight transport, in information-communication and in professional, scientific and technical activities. It has continued to improve in accommodation and food service activities and it has strengthened in real estate activities. However, it has deteriorated in administrative and support service activities.

In road transport, the business climate remains above its average,at 106. The increase in the balances on activity and on the general outlook is offset by the decline in those on expected demand, on past employment and on expected employment, the latter one reaching a lowest level since November 2016. All balances are nevertheless above their average.

After a fall of thirteen points in December 2018, the climate has improved for three months in accommodation and food services. In March, it has gained three points, to 108, well above its average. The expectations of business managers are more optimistic than in February 2019. The corresponding balances have sharply increased: that on expected employment has reached a highest level since December 2016. In contrast, the balance on past activity has fallen back below its average and that on past employment has weakened but it remains above its.

In information-communication, the business climate is stable (103), above its average. The further decrease in balances on expected demand, on expected activity and the slight dip in that on past employment are offset by the improvement in the balances on past activity, on expected employment and on general outlook. The balances on expected activity and on expected demand have moved below their average level, the other balances are above their.

In real estate activities, the climate has gained two points, to a highest level since November 2017. However, at 97, it stands below its average. Only the balance of opinion on past activity has decreased. The balances on employment have moved above their average, that on expected demand has reached its. The other balances are still below their average level.

The business climate in professional, scientific and technical activities, is stable (106), well above its average. Only the balance on the general outlook of managers on their own sector has declined. All balances are above their average, except that on past activity, which stands just below its average.

In administrative and support service activities, the climate has lost three points, dropping just below its average (99). All balances have decreased. Only the balance on the general outlook is above its average, that on expected demand has returned to its, the other balances stand below theirs.