25 January 2017

2017- n° 16

In the Q4 2016, production capacity is more used in the manufacturing industry Quarterly business survey (goods-producing industries) - January 2017

In January 2017, the industrialists have reported that they used more their machinery and equipment. The production capacity utilisation rate has increased by 0.8 points compared to the previous quarter. Production capacity is anew more used in the manufacturing industry than it was on average between 1995 and 2007.

Almost as many industrialists as in the previous quarter consider that they could produce more if they received more orders: the balance on production bottlenecks is virtually stable, above normal. The proportion of industrialists indicating difficulties of supply remains close to normal and that of industrialists reporting difficulties of demand only remains below its long-term average.

Compared to the previous quarter, more industrialists judge that global and foreign demand increased in the past months. The corresponding balances are above their mean level. Industrialists are roughly as upbeat as in the previous quarter on global and foreign demand over the next three months; the corresponding balances of opinion are above average.

In January 2017, fewer industrialists than in October have reported that they reduced workforce in the past three months. However, over the next few months, more industrialists than in the previous quarter forecast job losses. Both balances have remained above their long-term average since October 2013.

One out of four industrialists have experienced hiring difficulties; this part has dramatically decreased in January and is now just below its long-term average.

According to industrialists, selling prices in the manufacturing industry have increased in Q4 2016 (+0.2%), for the first time since two years. Business managers forecast a further increase in Q1 2017 (+0.3%).

Almost as many industrialists as in the previous quarter have experienced cash-flow problems (11%). This proportion stands below its mean level (14%).

In January 2017, the industrialists' opinion on their competitive position on domestic market or on foreign markets inside EU is almost unchanged. However, that on competitive position outside EU has slightly increased. These three balances are close to their long-term average. Nevertheless, industrialists are much more upbeat than in October on general exportation prospects: the corresponding balance has reached its highest level since Q3 2015, significantly above normal.