25 June 2019

2019- n° 163

In June 2019, the business climate has slightly strengthened in services Monthly survey of services - June 2019

According to business managers surveyed in June 2019, the business climate in services has improved a little. The business climate composite indicator has gained one point. At 107, it stands at its highest level since May 2018, well above its long-term average (100).

In June 2019, the business managers are a little more optimistic than in May on the general outlook for activity on their sector. Likewise, the balance on their own activity prospects has recovered and stands at its highest level since January 2018. In contrast, the balances on past activity and on expected demand have weakened. However, they stand above their long-term average.

The balance on expected selling prices has increased and stands above its average level. That on past selling prices, stable, remains well above its average.

The balance on pastemployment has bounced back, due to the sharp increase in the balance for temporary work agencies. The balance on expected employement has recovered as well for temporary work agencies as for services except temporary work agencies. These two balances stand above their average.

The balance on past investments has increased for the fourth month in a row and remain above its long-term average. That on expected investments is stable, just above its average level.

In June 2019, the turning point indicator remains in the area indicating an uncertain short-term economic situation.

The business climate indicator stands above its average in almost all sub-sectors. The climate has strengthened in road freight transport, accommodation and food services, information-communication as well as in real estate activities where it stands just below its long-term average. In contrast, it has weakened in professional, scientific and technical activities and in administrative and support services. In this last sub-sector, it stands at its average.

In road transport, the climate indicator has gained three points and has returned to its level of April. At 108, it stands well above its average. Most of the balances of opinion have increased, particularly those on expected activity and on expected employment which have sharply grown. All balances are above their average.

In accommodation and food services, the climate has gained six points after a deterioration in May. At 110, it stands significantly above its long-term average. This improvement is particularly due to the sharp increase in the balances on general outlook, on expected activity and on expected demand.

In information-communication, the business climate has gained three points. At 106, it has returned to its level of April, well above its average. The balances on general outlook, on expected activity and on expected employment have sharply grown. In contrast, those on past activity and on past employment have decreased. The different balances stand well above their average, except these on employment.

In real estate activities, the climate has gained five points after a sharp drop in May. At 99, it has approached again its long-term average. All balances have gone up, in particular those on past employment and expected demand which have moved above their average level.

The business climate in professional, scientific and technical activities, has lost two points but remains above its average, at 106. The balances on general outlook, on activity and on expected demand have fallen back. However, all balances remain above their average.

In administrative and support service activities, the climate has lost one point. At 100, it stands just at its average. The balances on past activity, on expected demand, on expected employment and on general outlook have declined. That on expected demand has reached its lowest level since April 2015. However, the balance on expected activity has recovered a little but remains below its average and that on past employment has increased for the third month in a row and stands above its.