Informations Rapides · 26 August 2021 · n° 213

In August 2021, the business climate in retail trade and in trade and repair of vehicles as a whole has lost some luster again Monthly survey of retailing - August 2021

In August 2021, the business climate in retail trade and trade and repair of vehicles as a whole has accentuated the drop started last month. At 109, the indicator that synthesizes it has lost five points but remains significantly above its long-term average (100). This decline is mainly due to the sharp drop in the balance of opinion on the general business outlook for the sector.

In August 2021, the balance of opinion on the general business outlook for the sector for the next three months has continued to decline after falling back in July, but it remains above its long-term average.

At the same time, the balance on expected sales has sharply decreased again. It has returned below its average. On the other hand, the balance of opinion on recent sales has increased for the third consecutive month, moving further away from its average.

The balance of opinion on ordering intentions has fallen back while remaining above its average. That on the level of stocks, already below its average since last June, has fallen for the third consecutive month. The balance on the expected development in selling prices over the next three months is virtually stable at a high level, well above its average.

In August 2021, the balance of opinion of the business leaders on the expected trend in their workforce size for the next three months have increased for the third consecutive month, almost reaching its long-term average.

However, the balance on the recent change in the workforce size over the last three months has edged down and remains below its average.

In August 2021, in the retail trade, the business climate has been weakened. At 100, the composite indicator has lost two points and returned to its long-term average. This deterioration is mainly due to the marked drop in the balances of opinion on the general business outlook and on recent employment.

The balance of opinion on the general business outlook has once again fallen very sharply, while remaining well above its long-term average. Less optimistic about their sector, the retailers are also less optimistic about their own activity: the balance of opinion on expected sales has fallen again clearly, mainly owing to specialised trade, and has returned below its average. In contrast, the balance of opinion on recent sales has increased for the third consecutive month. It stands well above its average. This sharp increase is driven by non-specialised trade.

The balance of opinion on ordering intentions is virtually stable, above its average. That on the expected development in selling prices for the next three months has increased for the fourth consecutive month, driven by specialised retail trade, and therefore remains above its own.

The balance of opinion on the level of stocks has slid for the third consecutive month and has deviated further from its long-term average. It has fallen significantly in specialised retail trade but has recovered slightly in non-specialised retail trade.

Retailers have remained rather negative about employment. Their opinion on the recent change in their workforce size has deteriorated: the balance has fallen back, moving away from its long-term average. The one on the change in workforce size over the next three months has barely improved and remains below his average.

In August 2021, in trade and repair of vehicles, the business climate has declined again. At 108, it has lost 3 points but remains well above his average (100). This further deterioration is mainly explained by the large fall in the balance of opinion on the general business outlook, which is only partially offset by the increase in the balance of opinion on the expected change in the workforce size.

Indeed, the assessment of business leaders on the business prospects for the sector has deteriorated again distinctly, this balance remaining however above its average. Business leaders are also less optimistic than in the previous month about their own activity: the balance of opinion on expected sales has gone down markedly again, returning to its long-term average. The balance of opinion on ordering intentions has also dropped further, while remaining above its average. That on recent sales remains virtually stable, above its own.

The balance of opinion relating to the level of stocks has fallen back and stands well below its average. The one on the expected development in selling prices for the next three months has decreased slightly while remaining well above its average.

Regarding employment, the opinion of business leaders has improved compared to the previous month. The balance of opinion on the change in their workforce size for the next three months has picked up slightly, that on the recent change in employment has increased significantly. These two balances thus remain above their respective averages.

The business climate for July 2021 in retail trade and trade and repair of vehicles as a whole has been revised downwards by one point. The business climate for July 2021 in the sub-sector of trade and repair of vehicles has been revised downwards by two points. These revisions are mainly due to the inclusion of late responses from companies.