Informations Rapides · 25 March 2021 · n° 74

In March 2021, the business climate in the manufacturing industry is stable Monthly business survey (goods-producing industries) - March 2021

According to the business managers surveyed in March 2021, the business climate in manufacturing is stable. It stands at 98, slightly below its long-terme average (100). On the one hand, the industrialists' opinion on past production over the last three months has improved and they also have become more optimistic about the general production prospects in the manufacturing industry. On the other hand, especially regarding the manufacture of transport equipment, industrialists have lowered their opinion on their personal production prospects and their order-books.

The industrialists' opinion about the change in their producton over the past three months is much better than in February. The related balance of opinion has sharply picked up and has risen above its long-term level.

Moreover, industrialists are much more optimistic regarding the general production prospects in the French industrial sector. While this balance had already caught up with its long-term level last month, it has soared in March 2021 and reached its highest point since October 2018.

The level of stocks has again been revised downwards by the industrialists. The balance, relating to the level of stocks compared to normal level, has further diminished. It now stands at a level well below its long-term average.

Finally, concerning employment, the industrialists' opinion has improved. The balances on past and expected change in workforce size, have both picked up sharply after a slight decline in February. They stand now above their long-term level.

In March 2021, industrialists have significantly lowered their personal production prospects for the next three months, whereas the balance of opinion in question had been improving since December 2020. The balance has fallen back to its long-lerm level, mainly due to the automotive industry.

Likewise, the balance of opinion on order-books has decreased, admittedly slightly, but for the first time since December 2020 for the overall order-books (October 2020 for the foreign order-books). The level of these balances level remain strongly deteriorated. Here again, the automotive industry explains most of this inflextion.

In March 2021, the business climate indicator stands above its long-term level in nearly all branches of the industrial sector, except for the manufacture of transport equipment where the climate remains very gloomy. It has improved in the manufacture of food products and beverages and in the so-called "other manufacturing" and stabilised in the manufacture of machinery and equipment goods.

In March, the business climate has improved again markedly in the manufacture of food products and beverages driven in particular by a better opinion on order books. The 6 additional points have allowed it to return slightly above its average.

In the branch known as "other manufacturing", the business climate has consolidated its improvement by gaining 2 more points, to 104.

The business climate in the manufacture of machinery and equipment goods has remained stable, standing at 106 since the start of the year, well above its average.

However, in the manufacture of transport equipment, the business climate has remained very gloomy. In the branch of other transport equipment, where the aeronautics industry occupies an essential part / position, the business climate indicator has stagnated at an extremely deteriorated level (79). In the car industry, the business climate has deteriorated significantly and lost 7 points, weighed down in particular by the sharp drop in the balance on overall order books.

The business climate in manufacturing in February 2021 has been revised upwards by one point due to the inclusion of late responses from some companies.