Informations Rapides · 26 May 2021 · n° 133

In May 2021, the business climate has recovered very strongly in retail trade Monthly survey of retailing - May 2021

In May 2021, the business climate in retail trade and in trade and repair of vehicles as a whole has recovered very strongly, in connection with the announcement, at the end of April, of the schedule for the third lockdown exit. At 107, the indicator that synthesizes it has gained 17 points. It has exceeded its long-term average (100) for the first time since the start of the health crisis. This very strong improvement is mainly due to the increase in the balance of opinion on the general business outlook for the sector.

In May 2021, the balance of opinion on the general business outlook for the sector for the next three months has bounced back very strongly, in connection with the planned alleviation of health restrictions and in particular the reopening, on May 19, of the so-called "non-essential" businesses. It has therefore returned significantly above its long-term average, for the first time since February 2020.

The forward-looking balances of opinion on ordering intentions and expected sales have also recovered sharply and have returned above their average. However, the balance on recent sales has gone down slightly and stands below its long-term average.

The balance of opinion on the level of stocks has increased sharply and has gone back above its average. That on the expected development in selling prices has recovered and stands above its own. The bimonthly balance on the recent development in selling prices is virtually stable above its average, that on the cash position has deteriorated compared to last March and has became lower than its own.

In May 2021, the balance of opinion of business managers on the change in their workforce size for the next three months has bounced back slightly, whereas the one on the change over the last three months has fallen back a little. These two balances remain markedly below their respective averages.

In retail trade, the business climate has bounced back strongly. At 96, the composite indicator has gained 10 points and has returned to its level of last January. However, it remains below its long-term average (100).

In May 2021, the balance of opinion on the general business outlook for the sector has risen very strongly and has returned, for the first time since February 2020, above its long-term average. That on ordering intentions has bounced back sharply after an equally marked drop in the previous month and has almost reached its average. This rebound has been particularly marked in the specialized retail trade sector, which has been very much affected by the health measures.

The balance of opinion on expected sales has grown very strongly, again mainly due to specialized retail trade. It has returned slightly above its long-term average. In contrast, the balance of opinion on recent sales has declined, much more significantly in specialized retail trade than in non-specialized retail trade. It has gone back below its average. The balance on the level of stocks has increased again, more sharply than in April, and has returned above its average.

The balance of opinion on the expected development in selling prices has recovered slightly and stands above its average. The bimonthly balance on the recent development in selling prices is stable compared to last March and stands above its average. The bimonthly balance of opinion on the cash position has again dropped slightly and has moved away from its own.

The balance of opinion on the expected change in the workforce size for the next three months has bounced back moderately while that on the change over the last three months has dipped a little. These two balances remain below their average.

In trade and repair of vehicles, the business climate has recovered strongly. At 106, it has gained 11 points and has gone back significantly above its average (100).

In May 2021, the balance of opinion on the general business outlook for the sector has risen very strongly and has returned, for the first time since February 2020, above its long-term average. The one on ordering intentions is on the rise and stands now above its average.

The balance of opinion on expected sales has increased again, much more significantly than in the previous month, and has returned above its average. That on recent sales, virtually stable, is close to its own. The balance of opinion on the level of stocks has bounced back strongly while remaining below its average. The one on the expected development in selling prices has recovered very sharply and has surpassed its own. The bimonthly balances on the recent development in selling prices and on the cash position have decreased compared to last March. However, both of them remain above their average.

Finally, the balances of opinion on the change, both recent and expected, in the workforce size have hardly decreased. The former matches its long-term average, the latter stands below its own.

The business climate for April 2021 in retail trade and in trade and repair of vehicles as a whole has been revised downwards by one point. This revision is mainly due to the inclusion of late responses from companies.