Informations Rapides · 20 October 2022 · n° 274

In October 2022, the business climate in the building construction industry remains favourable Monthly survey of building - October 2022

In October 2022, the opinion of business managers in the building construction industry regarding their past activity has improved. They maintained their opinion on their expected activity, even if they consider that it is more difficult than in the previous month to predict the future evolution of their situation. In total, the business climate composite indicator has improved slightly and remains at a high level (115).

In October 2022, building contractors are as optimistic as the previous month regarding their expected activity for the next three months. The corresponding balance remained above its long-term average. The balance of opinion regarding their past activity has improved and stands above its average, while the economic uncertainty felt has risen again.

The quarterly balance of opinion on general business outlook has remained stable after three consecutive months of decline. It remains above its average.

In October 2022, the production capacity has risen standing at around 94%, thus remaining above its long-term average (89%).

Almost the same number of managers as in the previous month have reported obstacles limiting their production (69% in October after 70% in September). Half of them have declared facing difficulties due to a workforce shortage, a proportion that has risen slightly this month and stands way above its long-term average. A third of business managers declared supply difficulties, a proportion similar to that of September and well above its average.

Additionally, the share of companies at the limit of their production capacity, that is to say that they could not produce more with their current means if they received more orders, has risen again: 54% of business managers have reported to be in this situation, a share that is way above its long-term average. 30% (after 27% in September) consider themselves both unable to increase their production in case of additional orders and facing difficulties due to a lack of personnel. The share of business managers unable to increase their production and facing supply difficulties has risen too and stands at 18%. It remains way above its long-term average.

Moreover, the proportion of business managers reporting recruiting problems has been almost stable in October compared to July (when it reached its highest level since January 2008).

In October 2022, more business managers have announced that they will increase their prices in the upcoming three months than in the previous month. The corresponding balance of opinion rises again to stand way above its long-term average.

The quarterly balance of opinion on cash flow position decreases slightly and reaches its long-term average, whereas the one regarding late payments remains almost stable above its long-term average.

In October 2022, the balance of opinion of business managers about the upcoming change in their workforce over the next three months has rebounded. The one related to the change in workforce size over the last three months has increased again. Both balances remain above their average.

In October 2022, more building contractors consider that the level of their order books is higher than average. The corresponding balance drops slightly but stays way above its average. Moreover, given their staff size, building contractors consider that their order books provide them with 8.6 months of work, an amount that remained almost stable this month compared to the previous month, and above its average.

The business climate in the building construction industry of September 2022 was revised downwards by one point (after rounding) due to the late responses from companies.