23 October 2014
2014- n° 244In October 2014, the economic climate remains sluggish in the building construction
industry Monthly 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.
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.
graphiqueClimate – Composite indicator
graphiqueTurningPoint – Turning-point indicator
- Lecture: close to 1 (respectively -1), it indicates a favorable climate (respectively unfavorable).
tableauTableau1 – 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.
graphiqueActivity – 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.
graphiqueWorkforce – 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.
graphiqueOrderBooks – 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.
graphiquePcur – 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.
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