The economic climate remains sluggish in the building industry in September 2014Monthly survey of building - September 2014

According to the business managers surveyed in September 2014, the situation remains sluggish in the building industry. The composite indicator has decreased by one point and has reached its lowest level (88) since 1997. It stays below its long-term average. The turning-point indicator is in the unfavorable zone.

Informations rapides
No 195
Paru le : 23/09/2014
Prochaine parution le : 23/11/2017 at 08:45 - November 2017

According to the business managers surveyed in September 2014, the situation remains sluggish in the building industry. The composite indicator has decreased by one point and has reached its lowest level (88) since 1997. It stays 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 industry economic outlook

Balances of opinion, in %, SA
Building industry economic outlook
Mean* June 14 July 14 Aug. 14 Sept. 14
Composite indicator 100 92 90 89 88
Past activity –3 –15 –19 –28 –35
Expected activity –6 –17 –26 –29 –28
Gen. business outlook –18 –48
Past employment –4 –25 –25 –27 –30
Expected employment –3 –22 –20 –28 –28
Opinion on order books –21 –47 –52 –52 –53
Order books (in month) 5,3 6,8 6,4 6,6 6,6
Productive capacity utilisation rate 88,8 85,3 85,3 85,4 85,0
Obstacles to production increase (in %) 33 23 20 20 20
- Because of workforce shortage (in %) 15,1 3,7 4,4 4,1 3,9
Recruiting problems (in %) 59 45
Expected prices –13 –31 –35 –34 –34
Cash-flow position –9 –25
Repayment period 28 46
  • * Mean since September 1993.
  • Source: French business survey in the building industry - Insee

Activity remains deteriorated

Substantially more business managers than in August indicate a fall in their past activity. The balances of opinion corresponding to past and expected activity are significantly below their long-term average.

Activity – Activity tendency in the building industry

Decreasing employment

More business managers than in August indicate job losses in the recent period. The balances of opinion corresponding to past and expected employment remain substantially below their long-term average.

Workforce – Workforce size tendency in the building industry

Order books are still considered lower than normal

In September, business managers still consider their order books lower than normal.

OrderBooks – Order books

Productive capacity underused again

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 five declares having difficulties increasing his activity (against one out of three in average).

Pcur – Productive capacity utilization rate

Prices not very dynamic

In September, as many business managers as in August indicate price downturns. The corresponding balance of opinion is well below its long-term average.