Informations Rapides · 24 November 2022 · n° 303

In November 2022, the business climate in the building construction industry has slightly degraded Monthly survey of building - November 2022

In November 2022, the business climate in the building construction industry has slightly degraded. Indeed, the opinions of business managers in the building construction industry regarding both their past and expected activity have degraded. At the same time, they have reported it was as difficult as in the previous month to predict the future evolution of their companies’ situation.

In November 2022, building contractors have been less optimistic than in the previous month regarding their expected activity for the next three months. The corresponding balance has decreased but remains above its long-term average. The one regarding their past activity over the last three months has also deteriorated while maintaining itself above its average.

The economic uncertainty felt remains stable.

In November 2022, the production capacity goes slightly back: it stands at 93% after 94% in October. It remains at a high level, above its long term average (89%).

As many business managers as in the previous month have reported facing obstacles limiting their production (69%). Almost half of them have declared facing difficulties due to a workforce shortage, a proportion almost stable this month and way above its long-term average. The share of business managers who have declared facing supply difficulties has dropped (standing at 29% against 33% in October and 40% in April 2022).

Moreover, 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 for the third month in a row: 55% of business managers have reported to be in this situation. 28% considered themselves both unable to increase their production in case of additional orders due to a lack of personnel, 15% due to supply difficulties (a slightly decreasing share).

In November 2022, slightly fewer business managers than in the previous month have announced that they will increase their prices in the upcoming three months. The corresponding balance of opinion has slightly fallen.

In November 2022, the balance of opinion of business managers about the upcoming change in their workforce over the next three months has slightly fallen, while the one regarding the change in workforce size over the last three months has slightly increased. Both balances remain above their average.

In November 2022, slightly less building contractors than in the previous month have considered the level of their order books to be higher than average. The corresponding balance has slightly dropped but stays way above its average. Moreover, given their staff size, building contractors have considered that their order books provide them with 8.7 months of work, an amount that remains almost stable this month compared to the previous month. Since March 2021, the duration of the order books has remained between 8.5 and 9.0 months, well above its long term average.

The business climate in the building construction industry of October 2022 has not been revised (after rounding).