In June 2015, the economic climate is less deteriorated in the building construction industryMonthly survey of building - June 2015

According to the business managers surveyed in June 2015, the business climate has improved slightly in the building construction industry. The composite indicator has risen by 2 points. At 91, it stays below its long-term average (100), however. The turning point indicator has gone into the favorable zone.

Informations rapides
No 153
Paru le : 23/06/2015
Prochaine parution le : 23/11/2017 at 08:45 - November 2017

According to the business managers surveyed in June 2015, the business climate has improved slightly in the building construction industry. The composite indicator has risen by 2 points. At 91, it stays below its long-term average (100), however. The turning point indicator has gone into the favorable zone.

Fewer business managers forecast a fall in their activity

In June 2015, fewer business managers than in May forecast a fall in their activity in the next three months. Almost as many business managers as in May declare a fall in their activity over the past three months. However, the corresponding balances of opinion remain far below their long-term average.

Activity – Activity tendency in building construction

A little less pessimism about employment

In June 2015, fewer business managers than in May indicate a fall in their staff size in the recent period and for the next few months. However, 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* March 15 April 15 May 15 June 15
Composite indicator 100 89 88 89 91
Past activity –4 –31 –19 –17 –16
Expected activity –6 –25 –20 –25 –20
Gen. business outlook –19 –35
Past employment –4 –25 –33 –28 –25
Expected employment –4 –24 –28 –25 –19
Opinion on order books –22 –57 –56 –54 –56
Order books (in month) 5,4 6,5 6,6 6,5 6,6
Production capacity utilisation rate 88,6 83,8 83,9 83,9 84,2
Obstacles to production increase (in %) 32 21 20 17 22
- Because of workforce shortage (in %) 14,7 2,4 2,8 2,6 2,6
Recruiting problems (in %) 58 37
Expected prices –14 –34 –35 –34 –32
Cash-flow position –10 –23
Repayment period 29 43
  • * Mean since September 1993.
  • Source: French business survey in the building industry - INSEE

Order books are still considered lower than normal

Business managers’ opinion about their order books remains deteriorated. The corresponding balance stays at a very low level since October 2014. However, the number of months covered by these order books is almost stable (6.6 months), above its long term average (5.4 months).

OrderBooks – Order books

Production capacity stays underused

In June 2015, the production capacity utilisation rate has improved slightly to 84.2 % (+0.3 point compared to the last month) but stay well below its long-term average.

Pcur – Production capacity utilisation rate

Prices are still very tight

In June, slightly fewer business managers than in May indicate price falls. However, the corresponding balance remains substantially below its long-term average.