Informations Rapides · 24 June 2021 · n° 159

In June 2021, the business climate in industry has stabilised Monthly business survey (goods-producing industries) - June 2021

According to the industry business managers surveyed in June 2021, the business climate has been stable this month, after having grown steadily since December 2020. At 107, it lies above its long-term average (100). The balances on the order books have increased slightly and the one on the general production expectations has improved very clearly. However, the manufacturers' judgment about their past production has been less favourable. Furthermore, the balance on the expected trend in selling prices has reached its highest level since the beginning of the series.

In June 2021, the business managers asked about the general production expectations have been more numerous than in May to predict an increase in activity in industry. The balance in question has increased very clearly and has reached a level unseen since 2018, well above its average.

Manufacturers have remained optimistic about theirown productionprospects. The balance on the production expected over the next three months has been virtually stable, well above its average level. However, the balance on production over the last three months has fallen somewhat, while also remaining at a level well above its average.

The judgment of the business managers on the level of their overall order books has remained positive. The balance on the level of overall order books has been virtually stable at a level above its average, suggesting dynamic business prospects. The balance on foreign order books, which has been rising steadily since November 2020, has returned to its long-term average.

Regarding employment, the business managers' perception of the development in their workforce size has remained favourable. The balance of opinion on the past change in the staff numbers has been virtually stable above its average. The one on the expected change has increased again slightly and stands at a high level.

Since the year started, more manufacturers every month have declared a probable increase in their selling prices. In June 2021, the balance of opinion regarding the expected trend in selling prices has increased sharply again. Already above its average since October 2020, it has now reached its highest level since this question was first asked to business manufactures (1990).

The balance of opinion related to the level of stocks has increased a little. For four months, this balance has been hovering around a level well below its long-term average.

In the manufacture of food products and beverages, the business climate has slightly improved in June 2021. Personal production expectactions there were down compared to last month, but business manufacturers have been more numerous to report well filled foreign order books.

After a slight dip last month, the business climate in the machinery and equipment goods branch has rebounded. It has been notably driven by the increase in the balances on personal production expectations and on overall order books. It stands at a very high level.

By contrast, the situation of the manufacture of transport equipment has remained clearly deteriorated compared to the rest of the manufacturing industry. The business climate in this branch, significantly below its average, has worsened very slightly this month. It has been stable in  the manufacture of other transport equipment, whose activity is far from having returned to normal. The climate in the manufacture of motor vehicles has fallen back, in particular due to a sharp drop in the balance on production over the last three months.

Finally, in the branch known as other manufacturing, the business climate has increased very slightly, at a level well above its average. In particular, the climate for rubber and plastic products manufacturing as well as that of "other manufacturing industries" have improved.