Informations Rapides · 26 May 2021 · n° 129

In May 2021, the business climate in the industry has pursued its uninterrupted rise since December 2020 Monthly business survey (goods-producing industries) - May 2021

According to the industry business managers surveyed in May 2021, the business climate has improved for the sixth consecutive month. It has increased by 3 points to stand at 107, exceeding somewhat more its long-term average (100). The balances of opinion on production expectations and order books explain most of this improvement. In addition, the balance related to the expected trend in selling prices has continued to grow strongly and reached its highest level since 2011.

In May 2021, manufacturers are being more confident about their personal production prospects. The associated balance of opinion has once again increased sharply, moving closer to the levels reached in the summer of 2020, quite well above its average. The balance concerning activity over the last three months has been virtually stable at a high level, close to that of the beginning of 2018.

The manufacturers' opinion on the level of order books has further improved: the rise in the balance on overall order books has increased again at a sustained pace. It had already returned above its long-term average in April. The balance on foreign order books has continued to increase this month. However, it has remained slightly below its average.

The opinion of the business managers on the general production expectations in the manufacturing industry has become more favorable. The balance has leaped after having declined slightly last month. It has reached its highest point since the spring of 2018, well above its long-term average.

Since the year started, manufacturers have been more numerous every month to declare a probable increase in their selling prices. In May 2021, the balance of opinion regarding the expected trend in selling prices has pursued its sharp rise. Far above its average, it stands now close to its level of July 2008 or spring 2011.

The balance of opinion related to the level of stocks has been stable and has remained well below its long-term average.

Finally, business managers have improved their view of the trend in their workforce size. The balances related to past as well as expected changes in the workforce size have rebounded, after a slight decline in April. The balance of opinion on the past change in workforce size has gone back above its average, while the one on the expected change has further surpassed its own.

In May 2021, probably due to the gradual lifting of health restrictions, the business climate of the manufacture of food products and beverages has surged. It has reached 115, a level unprecedented since the end of 2007. It has even exceeded the climate of the machinery and equipment goods sector, a branch which until then had the strongest business climate in industry.

In the branch known as the other manufacturing industries, the business climate has pursued its consolidation. At 110, it has been above its average since early 2021 and has been rising steadily since February. The rise in the business climate in the wood, paper and printing industry has been particularly marked.

The business climate of the machinery and equipment industry has improved very slightly this month. At 91, it is the only branch whose climate has remained at a very deteriorated level since the health crisis started. The balance of opinion on export order books has picked up markedly, but has remained very low.

Finally, the branch of machinery and equipment goods has been the only one whose business climate has slitghtly faltered this month, after having grown a lot, well above its average level. At 112, it is close to its level of early 2018. In particular, the climate in the electrical equipment industry has decreased after its sharp rise last month. The business climate of the branch of computer, electronic and optical products has also fallen back.