22 July 2015

2015- n° 175

In the second quarter 2015, pressure on production capacity is virtually stable Quarterly business survey (goods-producing industries) - July 2015

In July 2015, the industrialists consider that the pressure on production capacity is almost unchanged. The production capacity utilisation rate is virtually stable compared to the previous quarter (82.2%). Since the third quarter of 2008, production capacity has been less used in the manufacturing industry than there was on average between 1994 and 2007.

The balance on production bottlenecks is virtually stable, at a level slightly above its long-term average. The proportion of industrialists considering that their production capacity is “more than sufficient” is higher than that considering their capacity as insufficient. This gap has increased in July and the balance stands above its long-term average.

In July 2015, a few more industrialists judge that global demand in the past months has fall, however the corresponding balance remains slightly above its mean level. Conversely, the balance of opinion on foreign demand has slightly risen above its long-term average. Over the next three months, more industrialists anticipate an improvement of global and foreign demand; the corresponding balances of opinion remain

above the normal. In July, more industrialists have indicated difficulties of supply only (21% against 14% in April), the proportion reaching its highest level since the end of 2011.

In July, more industrialist judge that workforce has diminished during the last months. However, the corresponding balance of opinion stays slightly above its long-term average. Over the next few months, industrialists are not more optimistic: the corresponding balance of opinion is stable and also remains above its historical level.

Less than a third of the industrialists have hiring difficulties, a part which has risen a little and is slightly above its long-term average.

According to the business managers in the manufacturing industry, wages have increased by 0.3% in the second quarter of 2015.

The balance of opinion on weekly working time is virtually stable. A few more industrialists anticipate a decrease of this working time over the next few months.

According to industrialists, selling prices in the manufacturing industry are virtually stable in the second quarter of 2015 (+0.1% after +1.0%); they forecast a virtual near stability for the next quarter (-0.1%).

Almost as many industrialists of the manufacturing industry have experienced cash-flow problems as in the previous quarter (13%). This proportion stands below its mean level.

In July 2015, general exportation prospects have deteriorated. After an increase by 36 points since July 2014, the corresponding balance has lost 13 points but remains clearly above it long-term average.

A few more business managers judge that in the second quarter of 2015, their competitive position on domestic market and on European market has improved. Conversely, the balance of opinion on their competitive position outside EU has deteriorated, but stays above its long-term average.