24 July 2019

2019- n° 187

In July 2019, the business climate has slightly weakened in services Monthly survey of services - July 2019

According to business managers surveyed in July 2019, the business climate in services has weakened a little. The business climate composite indicator has lost one point. At 106, it remains however well above its long-term average (100).

The balance of opinion on activity, and that on general outlook of activitywhich business managers have on their sector, have faltered. In contrast, that on expected demand has increased a little. These four balances stand above its long-term average.

The balance on past employment has shrunk and joined its average whereas that on expected employment has bounced back and passed above its.

The balance on past investments has sharply worsened but stands above its average level. That on expected investments has decreased too and joined its average.

In July 2019, business managers are less numerous than in April to report either difficulties of supply only or difficulties of demand only. The balance on difficulties of demand has even reached its lowest level since the beginning of the survey. Otherwise, business managers have reported less often difficulties in recruitment.

In July 2019, the turning point indicator stands in the area indicating a favourable short-term economic situation.

The business climate indicator stands above its average in all sub-sectors except in real estate activities. The climate has fallen back in road freight transport, accommodation and food services, information-communication and real estate activities. Conversely, it has strengthened in professional, scientific and technical activities and in administrative and support services.

In road transport, the climate indicator has lost one point and has returned to its level of April. At 108, it remains well above its average. Almost all balances of opinion have decreased; only the balance on expected demand has sharply grown. However, all balances stand above their long-term average.

In accommodation and food services, the climate has lost six points after a sharp improvment in June. At 108, it stands well above its average. This fall is mainly due to the sharp decrease in the balances on expected demand and on general outlook. Only the balance on expected employment has increased a little. All balances of opinion stand above their average level.

In information-communication, the business climate has lost three points. At 104, it has returned to its level of May, above its average. All balances of opinion have weakened except these on past employment and expected employment. Especially, the balances on activity and on general outlook have sharply decreased.

In real estate activities, the climate has lost two points, at 96. Since October 2017, it has been below its average. The balances on expected activity, on expected demand and on past employment have decreased. In contrast, these on general outlook, on past activity and on expected employment have picked up. Only the balances on past activity and on expected employment stand above their average.

The business climate in professional, scientific and technical activities has gained three points and stand well above its average, at 109. Most of balances have increased and stand above their average; only that on past employment is stable, slightly below its own. The improvment of the climate is particularly due to the sharp rise in the balance on expected demand.

In administrative and support service activities, the climate has gained four points. At 101, it stands just above its average. The balances on expected activity, on expected demand and on expected employment have clearly edged up but stand below its average. Only the balance on past employment has weakened.