In October 2015, the short-term economic climate remains deteriorated in the building construction industryMonthly survey of building - October 2015

According to the business managers surveyed in October 2015, the business climate is virtually stable in the building construction industry. The composite indicator which measures it has decreased by one point and remains significantly below (90) its long-term average (100). The turning point indicator has moved into the neutral zone.

Informations rapides
No 256
Paru le : 22/10/2015
Prochaine parution le : 26/09/2017 at 08:45 - September 2017

According to the business managers surveyed in October 2015, the business climate is virtually stable in the building construction industry. The composite indicator which measures it has decreased by one point and remains significantly below (90) its long-term average (100). The turning point indicator has moved into the neutral zone.

Climate – Business 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* July 15 Aug. 15 Sept. 15 Oct. 15
Composite indicator 100 90 91 91 90
Past activity –4 –24 –22 –24 –17
Expected activity –7 –14 –11 –13 –20
Gen. business outlook –19 –27 –24
Past employment –5 –28 –26 –26 –31
Expected employment –4 –22 –24 –21 –24
Opinion on order books –23 –55 –53 –52 –53
Order books (in month) 5,4 6,5 6,6 6,6 6,5
Production capacity utilisation rate 88,6 85,0 84,7 84,4 84,5
Obstacles to production increase (in %) 32 23 23 21 20
- Because of workforce shortage (in %) 14,5 3,4 2,9 2,6 2,8
Recruiting problems (in %) 58 40 41
Expected prices –14 –32 –29 –29 –33
Cash-flow position –10 –20 –12
Repayment period 29 42 39
  • * Mean since September 1993.

More business managers forecast a fall in their activity

In October 2015, slightly fewer business managers than in the previous month have declared a fall in their activity in the recent period. Their opinion on general business outlook has continued to improved compared to the past quarters. However, more business managers than in September forecast a fall in their activity for the next three months.

The three corresponding balances are far below their long-term average.

Activity – Activity tendency in building construction

Increased pessimism about employment

In October 2015, more business managers than in September have indicated a fall in their staff size in the recent period and for the next few months. The corresponding balances, already below their long-term average, have deviated further from their long term average.

Workforce – Workforce size tendency in building construction

Order books are considered far below normal

Business managers' opinion about their order books remains very negative. The corresponding balance has been very low for more than a year now. Considering their workforce, they evalue that their order books cover 6.5 months of work.

OrderBooks – Order books

Production capacity remains underused

Since 2008, the production capacity utilisation rate has been below its long-term average. In October 2015, it is virtually stable compared to the previous month (84.5%). One business manager out of five has reported difficulties in increasing output, against one out of three in average since 1993. Only 41% of construction firms have difficulties in recruiting labor force, against 58% in average.

Pcur – Production capacity utilisation rate

More price cuts have been declared

In October 2015, more business managers than in September have indicated price falls. The corresponding balance remains substantially below its long-term average. However, according to business managers, the cash-flow position is less deteriorated than in the previous quarter and the repayment period is reduced slightly.