The economic climate gets worse in the building industry in June 2014Monthly 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.

Informations rapides
No 147
Paru le : 25/06/2014
Prochaine parution le : 26/09/2017 at 08:45 - September 2017

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.

Climate – Composite indicator

TurningPoint – Turning-point indicator

  • Lecture: close to 1 (respectively -1), it indicates a favorable climate (respectively unfavorable).

Tableau1 – Building industry economic outlook

Balances of opinion, in %, SA
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.

Activity – 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.

Workforce – 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.

OrderBooks – 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.

Pcur – 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.