The economic climate gets worse in the building industry in July 2014Monthly survey of building - July 2014

According to the business managers surveyed in July 2014, the situation gets worse again in the building industry. The composite indicator has slumped by two points and has reached its lowest level (88) since mid-2009. It stays below its long-term average. The turning-point indicator stay in the unfavorable zone.

Informations rapides
No 172
Paru le : 23/07/2014
Prochaine parution le : 24/10/2017 at 08:45 - October 2017

According to the business managers surveyed in July 2014, the situation gets worse again in the building industry. The composite indicator has slumped by two points and has reached its lowest level (88) since mid-2009. It stays below its long-term average. The turning-point indicator stay 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* April 14 May 14 June 14 July 14
Composite indicator 100 93 94 90 88
Past activity –3 –17 –16 –18 –25
Expected activity –6 –20 –19 –20 –29
Gen. business outlook –18 –35 –48
Past employment –3 –20 –14 –27 –28
Expected employment –3 –20 –19 –24 –22
Opinion on order books –21 –41 –43 –47 –53
Order books (in month) 5,3 6,9 6,9 6,8 6,4
Productive capacity utilisation rate 88,8 86,1 85,5 85,3 85,1
Obstacles to production increase (in %) 33 23 24 23 20
- Because of workforce shortage (in %) 15,2 2,9 3,3 3,7 4,5
Recruiting problems (in %) 59 46 45
Expected prices –13 –33 –35 –33 –38
Cash-flow position –9 –22 –25
Repayment period 28 40 46
  • * Mean since September 1993.
  • Source: French business survey in the building industry - Insee

Activity remains deteriorated

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

The general business outlook, which expresses the business manager’s opinions about the general trend in the sector, is also much worse than the last quarter and is sharply below its long-term average.

Activity – Activity tendency in the building industry

Decreasing employment

Business managers stay pessimistic about job. The corresponding balances of opinion 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 July, much more business managers than in June consider their order books lower than normal. The corresponding balance of opinion is substantially below its long-term average.

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, one business manager out of five declares having difficulties increasing his activity.

45 % of building firm still have difficulties in recruiting labor force; this ratio is under its long-term average.

Pcur – Productive capacity utilization rate

Prices not very dynamic

In July, more business managers than in June indicate price downturns. But the corresponding balance of opinion is well below its long-term average.

According to business leaders, the cash-flow position of the overall sector is slightly more deteriorated than in the previous quarter and the repayment period gets longer.