Informations Rapides · 25 January 2024 · n° 13

In January 2024, the business leaders in the manufacturing industry have estimated to reduce their selling prices over the last three months Quarterly business survey (goods-producing industries) - January 2024

In January 2024, business leaders in the manufacturing industry have estimated to reduce their selling prices over the last three months; it is the first drop declared since July 2020. They have anticipated a stability of their prices over the next three months. They expect their demand to be less dynamic over the next three months. Finally, business leaders have estimated that production bottlenecks are a little more significant in January than in October, at a quite high level.

In January 2024, the balances of opinion on the past change in the overall and foreign demand have diminished. The one relative to the foreign demand has withdrawn at its long-period average while the one associated to the global demand, falling for a year, has moved away from its average. Moreover, the balances of opinion on the expected change in the overall and foreign demand have retreated. Both have gone back below their respective average.

The share of companies at the limit of their production capacity has increased in January 2024: 31% have deemed that they would not be able to increase their production with their current means if they received more orders, against 29% in October 2023. This proportion remains above its average. Fewer business leaders than three months ago have considered their production capacities sufficient given the expected change in orders over the coming months. The associated balance of opinion has withdrawn and has moved away from its long-period average. The production capacity utilisation rate is stable: at 81% it remains just below its average level.

The balance of opinion on the expected change in investment over the next three months has highly decreased and has reached its lowest level since the introduction of this question in the survey in October 2021.

In January 2024, the proportion of business leaders declaring encountering recruitment difficulties has continued its fall that began in October 2022. These difficulties remain however frequent: 54% of the business leaders have estimated to encounter some of them, a share much higher than the long-period average.

In January 2024, business leaders have reported, on average, that their selling prices have diminished by 0.4% over the last three months. It is the first time that they have declared a fall in the prices since July 2020. Over the next three months, business leaders anticipate a stability in their selling prices (0.0%).

The balance of opinion on the general prospects of change in hourly wages in the manufacturing industry has rebounded after three quarters of decline and it has gone back just above its long-period average.

The cash-flow situation of industrial enterprises has been deemed stable compared to October: the associated balance of opinion is just below its average.