Informations Rapides · 24 March 2022 · n° 74

In March 2022, the business climate in manufacturing industry has strongly deteriorated Monthly business survey (goods-producing industries) - March 2022

According to the business managers surveyed in March 2022, the business climate in manufacturing industry has strongly deteriorated compared to the previous month. At 106, the composite indicator has lost six points but still remains above its average (100). Each balance of opinion composing the climate has participated in its decrease; the fall in the balance on the personal production expectations has contributed the most to it. In addition, the balance on the expected trend in selling prices has reached a new high point since the beginning of this series (1990).

In March 2022, the balances of opinion on production prospects have dropped. The balance on the personal production expectations over the next three months has gone back right below its average. It has reached its lowest level since November 2020. The one on the general production prospects has also fallen but remains above its long-period average. The balance on past production has barely diminished and remains above its average.

For the first time since May 2021, the balance on the expected change in workforce has shrunk. The balance on the past change in workforce has been stable. Both balances remain well higher than their respective averages.

The balance on the level of the overall order books has distinctly withdrawn, after two monthly increases. It remains above its average. The balance related to the foreign order books has slightly diminished and also remains above its average.

In addition, the balance associated to the current level of the finished-goods inventory has straightened up. It has reached its highest level since February 2021 but remains below its average.

The balance on the expected trend in selling prices has sharply risen again and has reached a new high point since the beginning of this series (1990), outperforming its last record of December 2021.

Furthermore, more business leaders than last month have reported the situation of their enterprise to be difficult to predict. The balance of opinion on the perceived economic uncertainty has reached its highest level since this started a year ago.

In the manufacture of food products and beverages, the business climate indicator has barely bent and remains largely above its average. The balance on the production over the last three months has withdrawn again and has converged to its average.

In the manufacture of machinery and equipment goods, the business climate indicator has clearly deteriorated but remains well above its average. This fall results from the decrease in the balances on production, past as well as expected, and in those on order books.

The business climate indicator in the manufacture of transport equipment has largely deteriorated. In the manufacture of motor vehicles in particular, the climate has lost 16 points. After three months of rise in a row, it has fallen back below its average, returning to its July 2020 level. It was notably affected by the declines in the balances of opinion on the overall order books and on the personal production prospects. However, the business climate indicator has slightly increased in the other transport equipment.

Finally, the business climate has also darkened in the so-called "other industries" sector; all the balances of opinion that make it up have declined, except for the one on past production, which has been stable.