25 February 2020

2020- n° 41

In February 2020, the business climate in the manufacturing industry is stable above its average Monthly business survey (goods-producing industries) - February 2020

According to the business managers surveyed in February 2020, the business climate in industry has remained at 102, two points above its long term average.

In February 2020, the industrialists’ balance of opinion on their overall order books has improved for the second month consecutively, after the low point of December. However, the balance on foreign order books has worsened again, after a rebound in January. Both balances stand above their long-term average.

The balance of opinion on past production has recovered slightly but stays below its average. The balance on personal production prospects is stable, after a sharp increase in January, and the one on general prospects has recovered sharply. Both balances stand above their long-term average.

The finished-good inventories are assessed to be low : the corresponding balance of opinion has declined for the third month consecutively. It has reached its lowest level since January 2018, well below its long-term average.

Considering employment, the balances of opinion on past and expected variations are practically stable. Both balances stand above their average.

The turning point indicator has remained in the area indicating a favourable economic outlook.

In the agrofood industry, the business climate has gained two points. At 109, it stands significantly above its long-term average. The increase in the composite indicator is explained principally by the rise in the balances on past production and overall order books.

In the manufacture of equipment goods, the business climate has lost one point, mainly because of the decline in the balance on personal production prospects. It has returned to its long-term average (100).

In the manufacture of computer, electronic and optical products, the business climate has deteriorated in February after a sharp rebound in January. At 105, the composite indicator has lost five points, principally due to the decline in the balances on order books. The business climate has gained one point in the manufacture of electrical equipments (99) and two points in the manufacture of machinery and equipments (98). However, the composite indicator stays below its long-term average in both those sectors.

In the manufacture of transport equipment, the business climate stays at 105, well above its long-term average.

In the automotive industry, the business climate has kept improving. At 103, its has gained two points and has practically reached its level of September 2018. This improvement is due to the sharp rise in the balance on personal production prospects, despite the deterioration in the balance on foreign order books.

In the manufacture of other transport equipments, the business climate is virtually stable (104) and stands above its long-term average.

In the overall « other manufacturing » industry, the business climate has gained one point and reached its average (100).

The business climate has improved in almost all activities. The increase is sharp in the wood-paper-printing industry (106) and in the « other manufacturing industries » (109): the composite indicator has gained respectively three and two points. The improvement is less pronounced in the rubber and plastic industry (99) and in the manufacture of basics metals and metal products (95): the composite indicator has gained one point in both sectors. The business climate is stable in chemicals and chemical products (95). Finally, the business climate has deteriorated sharply in the clothing-textiles industry where it has lost five points (105) and reached its lowest point since September 2017.

The business climate of January 2020 has been revised upwards by two points. This revision concerns particularly the manufacture of transport equipment. It is explained by the late responses of some companies and by the entries and exits from the sample because of occasional non-response of some other companies.