29 August 2013

2013- n° 193

In August 2013, the business climate in manufacturing industryimproved again Monthly business survey (goods-producing industries) - August 2013

According to the business managers surveyed in August 2013, the business climate in industry went on improving. The synthetic index rose by three points, compared with the previous month.

Compared with the previous month, the turning-point indicator still went up and indicated a favourable cyclical dynamic.

The balance of opinion on past change in production went up, compared with the previous month, and reaches its long-term average. As for the balance of opinion on expected change in production, it remained unchanged, slightly below the long-term average.

Global and export order books improved. Nevertheless, both are still considered lower than usually.

After an increase in July, the balance on general production outlook, which represents business managers’ opinion on French industry as a whole, rose markedly anew. But its level remains less than the long-term average.

Finally, stocks of finished products remained nearly stable and considered in accordance with their normal level.

In the manufacture of food products and beverages, the balance on past change in production went up slightly but remains still bellow its long-term average. Stocks of finished products rose clearly and are considered above their normal level. Export and global order books still deteriorated slightly and are described as low. The balance on expected change in production improved and becomes higher than its long-term level.

In the manufacture of electrical and electronical equipment ; machine equipment, industrialists consider that their past activity improved anew and the corresponding balance reaches its long-term average. Stocks of finished products remained unchanged, still considered very higher than their normal level. In spite of an improvement in August, export and global order books remained very low. Business owners were less pessimistic about their production outlook.

In the manufacture of motor vehicules, trailers and semi trailers, the balance on past activity rose markedly, compared with July, and is now near its average level. Industrialists of this sector remain optimistic about their expected production: the corresponding balance is still above its long-term level. While global order books are still described as very low, export order books improved strongly anew and are considered normal. As for the finished-goods inventory level, it went up markedly but is still considered less than its normal level.

In August, in the manufacture of other transport equipment, the past activity was still dynamic. Stocks of finished products became heavier and are considered near their normal level. As for the demand, foreign order books are still described as deteriorated, while global order books are considered dynamic. In view of the personal production outlook, the activity should decelerate over the next months.

According to the business managers, the past activity slightly fell back in the manufacture of chemicals and in the one of basic metals, and markedly increased in the manufacture of pharmaceutical products and in the one of rubber and plastic products. The production expectations in the next months deteriorated sharply in the manufacture of pharmaceutical products. They were still considered deteriorated in the three other sectors, despite a slightly improvement of the corresponding balances in August. In the whole of sectors, export and global order books are still described as low, in spite of an increase of the balances. While the finished-goods inventory remained stable in the manufacture of basic metals, they became lighter in the three other sectors: their level is considered less than their normal level in the whole of sectors, except in the manufacture of pharmaceutical products where it is described as normal.