In October 2014, the economic climate remains sluggish in the building construction industryMonthly survey of building - October 2014

According to the business managers surveyed in October 2014, the situation remains sluggish in the building construction industry. The composite indicator has decreased by one point and has reached its lowest level (87) since 1997. It stays substantially below its long-term average. The turning-point indicator is in the unfavorable zone.

Informations rapides
No 244
Paru le : 23/10/2014
Prochaine parution le : 21/12/2017 at 08:45 - December 2017

According to the business managers surveyed in October 2014, the situation remains sluggish in the building construction industry. The composite indicator has decreased by one point and has reached its lowest level (87) since 1997. It stays substantially below its long-term average. The turning-point indicator is in 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 construction economic outlook

Balances of opinion, in %, SA
Building construction economic outlook
Mean* July 14 Aug. 14 Sept. 14 Oct. 14
Composite indicator 100 90 89 88 87
Past activity –3 –19 –28 –35 –33
Expected activity –6 –26 –29 –30 –31
Gen. business outlook –19 –42 –46
Past employment –4 –25 –27 –30 –31
Expected employment –3 –20 –28 –28 –26
Opinion on order books –21 –52 –52 –53 –59
Order books (in month) 5,3 6,4 6,6 6,5 6,5
Productive capacity utilisation rate 88,8 85,3 85,4 85,0 84,5
Obstacles to production increase (in %) 33 20 20 19 17
- Because of workforce shortage (in %) 15,1 4,4 4,1 3,8 3,4
Recruiting problems (in %) 59 44 41
Expected prices –14 –35 –34 –34 –35
Cash-flow position –9 –23 –25
Repayment period 29 45 44
  • * Mean since September 1993.
  • Source: French business survey in the building industry - Insee

Activity remains deteriorated

Business managers consider that their activity is still deteriorated in the recent period. They stay pessimistic about their activity for the next few months.

The general business outlook, which expresses the business managers’ opinions about the general trend in the sector, is worse than the last quarter and is sharply below its long-term average.

Activity – Activity tendency in the building construction

Pessimism about employment

In October, business managers stay pessimistic about employment. The balances of opinion on their past and expected workforce remain substantially below their long-term average.

Workforce – Workforce size tendency in the building construction

Order books are still considered lower than normal

In October, much more business managers than in September consider their order books lower than normal. The corresponding balance of opinion is substantially below its long-term average.

OrderBooks – Order books

Underused productive capacity

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 six declares having difficulties increasing his activity (against one out of three in long-term average). 41 % of construction firms still have difficulties in recruiting labor force; this ratio is under its long-term average.

Pcur – Productive capacity utilization rate

Cash flow position slighty more deteriorated

In October, almost as many business managers as in September indicate price downturns. The corresponding balance of opinion is clearly below its long-term average. According to business leaders, the cash-flow position of the overall sector is slightly more deteriorated than in the previous quarter and the repayment period is stable.