The economic climate remains deteriorated in the building industry in August 2014Monthly 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.

Informations rapides
No 195
Paru le : 27/08/2014
Prochaine parution le : 21/12/2017 at 08:45 - December 2017

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.

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* 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.

Activity – 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.

Workforce – 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.

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.

Pcur – 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.