25 June 2014
2014- n° 147The economic climate gets worse in the building industry in June 2014 Monthly survey of building - June 2014
According to the business managers surveyed in June 2014, the situation gets worse in the building industry. The composite indicator has slumped by four points and has reached its lowest level since mid-2009. It stays below its long-term average. The turning-point indicator has gone into the unfavorable zone.
According to the business managers surveyed in June 2014, the situation gets worse in the building industry. The composite indicator has slumped by four points and has reached its lowest level since mid-2009. It stays below its long-term average. The turning-point indicator has gone into the unfavorable zone.
graphiqueClimate – Composite indicator
graphiqueTurningPoint – Turning-point indicator
- Lecture: close to 1 (respectively -1), it indicates a favorable climate (respectively unfavorable).
tableauTableau1 – Building industry economic outlook
| Mean* | March 14 | April 14 | May 14 | June 14 | |
|---|---|---|---|---|---|
| Composite indicator | 100 | 94 | 93 | 94 | 90 |
| Past activity | –3 | –19 | –17 | –16 | –19 |
| Expected activity | –6 | –18 | –20 | –19 | –20 |
| Gen. business outlook | –18 | –35 | |||
| Past employment | –3 | –16 | –20 | –14 | –27 |
| Expected employment | –3 | –17 | –20 | –19 | –25 |
| Opinion on order books | –21 | –40 | –41 | –43 | –48 |
| Order books (in month) | 5,3 | 6,8 | 6,9 | 6,9 | 6,8 |
| Productive capacity utilisation rate | 88,9 | 85,9 | 86,1 | 85,5 | 85,4 |
| Obstacles to production increase (in %) | 33 | 24 | 23 | 24 | 23 |
| - Because of workforce shortage (in %) | 15,3 | 3,4 | 2,9 | 3,3 | 3,6 |
| Recruiting problems (in %) | 59 | 44 | |||
| Expected prices | –13 | –30 | –33 | –35 | –32 |
| Cash-flow position | –9 | –22 | |||
| Repayment period | 28 | 40 |
- * Mean since September 1993.
- Source: French business survey in the building industry - Insee
Activity remains deteriorated
Business managers consider that their activity is deteriorated in the recent period. They stay pessimistic about their activity for the next few months. The corresponding balances of opinion are significantly below their long-term average.
graphiqueActivity – Activity tendency in the building industry
Decreasing employment
Much more business managers than in May indicate job losses. The corresponding balances of opinion to past and expected employment are substantially below their long-term average.
graphiqueWorkforce – Workforce size tendency in the building industry
Order books are still considered lower than normal
In June, more business managers than in May consider their order books lower than normal. The corresponding balance of opinion is substantially below its long-term average.
graphiqueOrderBooks – Order books
Productive capacity underused again
The productive capacity utilization rate is almost stable and stays below its long-term average. At the same time, almost one business manager out of four declares having difficulties increasing his activity.
graphiquePcur – Productive capacity utilization rate
Prices not very dynamic
In June, slightly less business managers than in May indicate price downturns. But the corresponding balance of opinion is still well below its long-term average.
Documentation
Methodology (2016) (pdf,170 Ko)
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