23 July 2014
2014- n° 172The economic climate gets worse in the building industry in July 2014 Monthly 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.
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.
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* | 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.
graphiqueActivity – 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.
graphiqueWorkforce – 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.
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, 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.
graphiquePcur – 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.
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