25 March 2014

2014- n° 63

In March 2014, the business climate in manufacturing industry remains stable Monthly business survey (goods-producing industries) - March 2014

According to the business managers surveyed in March 2014, the business climate in industry remains stable compared to the previous month. The composite indicator has not changed and stands at its long-term average.

The turning-point indicator has slightly increased compared to February and is now in the zone indicating a favorable outlook.

The balance of opinion on past change in production remains stable at its long-term average. The balance of opinion on personal production expectation remains good-biased: it is nearly stable and stands above its long-term average.

While global order books remain nearly stable at a level close to their long-term average, export order books have markedly gone up and are now slightly above their long-term average.

The balance on general production expectations, which represents business managers’ opinion on French industry as a whole, has weakened and has reached a level which remains close to its long-term average.

Finally, stocks of finished products are stable and theirs levels are considered below their normal level.

In the manufacture of food products and beverages, the balance on past activity has slightly decreased but its level remains markedly above its long-term average. Stocks of finished products have nearly not changed and are considered as normal. Global order books as much as export order books are nearly stable and are considered as normal. The balance on expected activity has increased and is slightly above its long-term level.

In the manufacture of electrical and electronic equipment, machine equipment, industrialists consider that their past activity has still deteriorated : the corresponding balance has weakened and is clearly below its long-term average. Stocks of finished products have gone up and are considered as high. As for the global and foreign demand, the industrialists of this sector consider that it is very deteriorated. Their production expectations have markedly deteriorated.

In the manufacture of motor vehicles, trailers and semi trailers, the balance of opinion on past activity has slightly increased compared to February but still stands below its average level. The balance of opinion on the expected production has sharply gone up and has reached a level clearly above its long-term average. While global order books have increased, theirs levels are still considered low. The finished-goods inventory level has markedly gone down and is considered low.

In March, in the manufacture of other transport equipment, the balance of opinion on past activity is nearly stable at a level above its long-term average. Stocks of finished products have not changed and are considered very high. Global and foreign order books are described as high. According to the industrialists from this area, activity is likely to be very dynamic again over the next months.

According to business managers, the past activity has recovered in the manufacture of pharmaceutical products, has improved in the manufacture of basic metalls, keeps improving in the manufacture of chemicals, and have deteriorated in the manufacture of rubber and plastic products. As for the production expectations, they have markedly improved in the manufacture of basic metalls but have deteriorated in the three other sectors. While the levels of global order books are still described as low in all sectors, this of export order books remains certainly deteriorated in the manufacture of chemicals but has normalized in the manufacture of basic metalls and this of rubber and plastic products and has sharply recovered in the manufacture of pharmaceutical products. Finally, balances are bellow their average levels. Finally, the levels of finished-goods inventory are nearly stable in all sectors: while they are considered close to their normal level in the manufacture of basic metalls, they are described as low in the three other sectors.