27 August 2014
2014- n° 195The economic climate remains deteriorated in the building industry in August 2014 Monthly survey of building - August 2014
According to the business managers surveyed in August 2014, the situation remains deteriorated in the building industry. The composite indicator has decreased by one point and has reached its lowest level (89) since 1997. It stays below its long-term average. The turning-point indicator is in the unfavorable zone.
Warning: seasonal coefficients and parameters of composite indicator were updated for this survey.
According to the business managers surveyed in August 2014, the situation remains deteriorated in the building industry. The composite indicator has decreased by one point and has reached its lowest level (89) since 1997. It stays below its long-term average. The turning-point indicator is in the unfavorable zone.
graphiqueClimate – Composite indicator
graphiqueTurningPoint – Turning-point indicator
- Lecture: close to 1 (respectively -1), it indicates a favorable climate (respectively unfavorable).
tableauTableau1 – Building industry economic outlook
| Mean* | May 14 | June 14 | July 14 | Aug. 14 | |
|---|---|---|---|---|---|
| Composite indicator | 100 | 94 | 92 | 90 | 89 |
| Past activity | –3 | –15 | –15 | –19 | –26 |
| Expected activity | –6 | –18 | –17 | –26 | –29 |
| Gen. business outlook | –18 | –48 | |||
| Past employment | –3 | –14 | –25 | –25 | –27 |
| Expected employment | –3 | –17 | –22 | –20 | –27 |
| Opinion on order books | –21 | –44 | –47 | –52 | –51 |
| Order books (in month) | 5,3 | 6,9 | 6,8 | 6,4 | 6,6 |
| Productive capacity utilisation rate | 88,8 | 85,5 | 85,3 | 85,3 | 85,4 |
| Obstacles to production increase (in %) | 33 | 24 | 23 | 20 | 21 |
| - Because of workforce shortage (in %) | 15,2 | 3,3 | 3,7 | 4,4 | 4,5 |
| Recruiting problems (in %) | 59 | 45 | |||
| Expected prices | –13 | –34 | –31 | –35 | –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 July indicate a fall in their past and expected activity. The corresponding balances of opinion are significantly below their long-term average.
graphiqueActivity – Activity tendency in the building industry
Decreasing employment
More business managers than in July indicate job losses for the next few months. The balances of opinion corresponding to past and expected employment remain substantially below their long-term average.
graphiqueWorkforce – Workforce size tendency in the building industry
Order books are still considered lower than normal
In August, business managers still consider their order books lower than normal.
graphiqueOrderBooks – 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.
graphiquePcur – Productive capacity utilization rate
Prices not very dynamic
In August, almost as many business managers as in July indicate price downturns. The corresponding balance of opinion is well below its long-term average.
Documentation
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