Informations Rapides · 24 February 2021 · n° 047

In February 2021, the business climate has deteriorated in services Monthly survey of services - February 2021

According to the business managers surveyed in February 2021, the business climate in services has deteriorated. At 88, the business climate indicator has lost 4 points and has moved away again from its long-term average (100).

In February 2021, business leaders are more pessimistic overall than in the previous month. The balance of opinion on the general outlook for the sector activity has decreased sharply after rising in the last two months and thus remains below its average. The balance on expected demand for the next three months and the one on expected activity have also fallen back and thus remain below their respective average.

Conversely, the balance of opinion on activity over the past three months has recovered a little in February but still remains below its long-term average.

The balances of opinion on selling prices, both past and expected, have declined very slightly and thus remain below their average level.

About employment, the balance of opinion on the change in worforce size over the last three months has declined sharply again and stands well below its average. Regarding the balance on expected workforce size, it has increased slightly again but also remains below its average.

The balance of opinion on past investment has recovered but remains below its average level. The one on expected investment for the next three months is virtually stable and thus also remains below its average.

In February 2021, the overall deterioration in the business climate in services is especially due to the sharp worsening of the opinion of business leaders in accommodation and food services and in administrative and support services. The business climate remains below its average in all sub-sectors.

In accommodation and food services, a sub-sector among the most affected by the health measures, the business climate has deteriorated sharply, after a temporary improvement in December and January. At 66, the indicator has lost 6 points and stands at a very low level. The business leaders who responded to the survey are very pessimistic: the forward-looking balances of opinion on the general outlook for the sector activity, on expected demand for the next three months and on expected activity have decreased sharply and stand far below their average.

In administrative and support services, the business climate has also deteriorated significantly: the composite indicator has lost 6 points and at 86, it stands well below its average level. The forward-looking balances in this sector have declined strongly.

In information and communication and in professional, scientific and technical activities, the business climate has deteriorated more moderately and remains below its average level.

Conversely, the business climate has improved a little in the road freight transport while remaining below its long-term average. In particular, the balances on expected demand and expected workforce size have increased sharply.

Similarly, in real estate activities, the business climate has improved but still stands below its long-term average.

The business climate in January 2021 has been revised upwards by one point due to the inclusion of late responses from businesses.