Informations Rapides · 22 September 2022 · n° 245

In September 2022, the business climate in wholesale trade has deteriorated markedly Bi-monthly survey of wholesaling - September 2022

According to the business managers surveyed in September 2022, the bimonthly business climate in wholesale trade has deteriorated markedly. The composite indicator has lost six points compared to July and stands at 96. It has thus moved below its long-term average (100). This deterioration of the climate is mainly due to the sharp fall in the balance of opinion regarding the volume of merchandise received from abroad, and, to a lower extent, by the drop of the balances related to the volume of past sales and ordering intentions.

The balance of opinion of wholesalers regarding the volume of merchandise received over the past two months has decreased and has moved further away from its average. In particular, the balance of opinion specific to the merchandise received from abroad has fallen sharply and lies below its average level. It has worsened in all sub-sectors of wholesale trade, except in the wholesale trade of food products and beverages, where it has risen slightly.

The balance of opinion of wholesalers on the volume of their past sales continued the decline that started in March 2022. In September, it has fallen distinctly and has moved below its average. This balance has diminished in all sub-sectors of the wholesale trade, except in the wholesale trade of raw agricultural products and live animals and in the one of food products and beverages. The balance on the volume of past sales abroad has decreased again and also moved below its average. It has declined in all sub-sectors, except in the wholesale trade of other industrial capital goods.

In September 2022, the balance of opinion of wholesalers on their ordering intentions has fallen back but remains above its average. The one related to intentions of orders to be made abroad has also fallen and has moved below its average.

The balance of opinion on the general business outlook has gone on with its decline started in early 2022, although in a less pronounced way this month. It remains far below its long-term average. This balance has fallen especially in the wholesale trade of food products and beverages and the one of information and communication equipment, but it has increased in the one of raw agricultural products and live animals.

The balances of opinion on the past and expected change in selling prices of wholesalers have gone down again, after having reached in May 2022 levels unseen since 1982. Yet they both remain at high levels, far above their respective average.

The balance of opinion on the change in workforce size over the last two months has slipped back sharply, almost reaching its average level. The balance on the expected change in workforce size has stabilized and remains higher than its average.

The balance of opinion related to the level of inventories has jumped again, reaching its highest level since November 2000. This increase is remarkably strong in the wholesale trade of information and communication equipment and of other industrial capital goods.

Finally, the balance related to their cash position is stable at the level of its average.

The business climate in wholesale trade of July 2022 has been revised upwards by one point. This revision is mainly due to the inclusion of late responses from companies.