27 August 2015
2015- n° 207In August 2015, the economic climate is virtually stable in the building construction
industry Monthly survey of building - August 2015
According to the business managers surveyed in August 2015, the business climate is virtually stable in the building construction industry. The composite indicator has increased by one point but stays below (91) its long-term average (100). The turning point indicator has decreased and has gone into the neutral zone.
According to the business managers surveyed in August 2015, the business climate is virtually stable in the building construction industry. The composite indicator has increased by one point but stays below (91) its long-term average (100). The turning point indicator has decreased and has gone into the neutral zone.
Business managers’ opinion about activity has slightly improved
In August 2015, fewer business managers than in the previous month forecast a fall in their activity for the next three months, again. Similarly, fewer business managers than in July declared a fall in their activity over the past three months. However, the corresponding balances of opinion remain far below their long-term average.
graphiqueActivity – Activity tendency in building construction
Business manager are pessimistic about employment
In August 2015, slightly more business managers than in July indicate a fall in their staff size for the next few months, again. As many business managers as in July indicate a fall in their staff size in the recent period. The corresponding balances remain substantially below their long-term average.
graphiqueWorkforce – Workforce size tendency in building construction
graphiqueClimate – Business climate 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 15 | June 15 | July 15 | Aug. 15 | |
|---|---|---|---|---|---|
| Composite indicator | 100 | 90 | 91 | 90 | 91 |
| Past activity | –4 | –17 | –17 | –24 | –21 |
| Expected activity | –7 | –25 | –20 | –14 | –11 |
| Gen. business outlook | –19 | –27 | |||
| Past employment | –5 | –28 | –24 | –28 | –28 |
| Expected employment | –4 | –25 | –19 | –22 | –24 |
| Opinion on order books | –23 | –54 | –56 | –55 | –54 |
| Order books (in month) | 5.4 | 6.5 | 6.5 | 6.5 | 6.6 |
| Production capacity utilisation rate | 88.6 | 83.9 | 84.5 | 85.0 | 84.6 |
| Obstacles to production increase (in %) | 32 | 17 | 22 | 23 | 24 |
| - Because of workforce shortage (in %) | 14.6 | 2.6 | 2.7 | 3.4 | 3.3 |
| Recruiting problems (in %) | 58 | 41 | |||
| Expected prices | –14 | –34 | –32 | –32 | –31 |
| Cash-flow position | –10 | –21 | |||
| Repayment period | 29 | 43 |
- * Mean since September 1993.
- Source: French business survey in the building industry - INSEE
Order books have been considered very low for 10 months
Business managers’ opinion about their order books remains deteriorated. The corresponding balance has been very low since October 2014. However, the number of months covered by these order books is practically stable (6.6 months), above its long term average (5.4 months).
graphiqueOrderBooks – Order books
Production capacity is still largely underused
The production capacity utilisation rate has been below its long-term average since 2008. In August 2015, it has decreased anew (84.6%) after a slight rebound in July (85.0%). At the same time, almost one business manager out of four has reported difficulties to increase its output, against one out of three in average since 1993.
graphiquePcur – Production capacity utilisation rate
Prices remain tight
In August 2015, almost as many business managers as in July indicate price falls. The corresponding balance remains substantially below its long-term average.
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