In September 2015, the economic climate remains low in the building construction industryMonthly survey of building - September 2015

According to the business managers surveyed in September 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 remains in the favorable zone.

Informations rapides
No 232207
Paru le : 24/09/2015
Prochaine parution le : 26/09/2017 at 08:45 - September 2017

According to the business managers surveyed in September 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 remains in the favorable zone.

Business managers consider their activity still deteriorated

In September 2015, slightly more business managers than in the previous month have declared a fall in their activity in the recent period and for the next three months. The corresponding balances of opinion are far below their long-term average.

Activity – Activity tendency in building construction

Persistent pessimism about employment

In September 2015, almost as many business managers as in August have indicated a fall in their staff size in the recent period and for the next few months. The corresponding balances remain substantially below their long-term average.

Workforce – Workforce size tendency in building construction

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* June 15 July 15 Aug. 15 Sept. 15
Composite indicator 100 91 90 91 90
Past activity –4 –17 –24 –22 –24
Expected activity –7 –20 –14 –11 –14
Gen. business outlook –19 –27
Past employment –5 –24 –28 –26 –27
Expected employment –4 –19 –22 –24 –23
Opinion on order books –23 –56 –55 –53 –52
Order books (in month) 5,4 6,5 6,5 6,6 6,5
Production capacity utilisation rate 88,6 84,5 85,0 84,7 84,3
Obstacles to production increase (in %) 32 22 23 23 22
- Because of workforce shortage (in %) 14,6 2,7 3,4 2,9 2,9
Recruiting problems (in %) 58 41
Expected prices –14 –32 –32 –29 –30
Cash-flow position –10 –21
Repayment period 29 43
  • * Mean since September 1993.
  • Source: INSEE, French business survey in the building industry

Order books have been considered very low

Business managers’ opinion about their order books remains deteriorated. The corresponding balance has been very low for almost a year now. However, the number of months covered by these order books is practically stable (6.5 months), above its long term average (5.4 months).

OrderBooks – Order books

Production capacity has been even less used

Since 2008, the production capacity utilisation rate has been below its long-term average. In September 2015, it has decreased again (from 84.7% to 84.3%). Almost one business manager out of five has reported difficulties in increasing output, against one out of three in average since 1993.

Pcur – Production capacity utilisation rate

Prices has been reported down

In September 2015, almost as many business managers as in August have indicated price falls. The corresponding balance remains substantially below its long-term average.