23 May 2017

2017- n° 133

In May 2017, the business climate in manufacturing remains at its highest level since June 2011 Monthly business survey (goods-producing industries) - May 2017

According to the business managers surveyed in May 2017, the business climate in industry remains at 109, its highest level since June 2011, significantly above its long-term average (100).

The turning-point indicator remains in the zone indicating a favourable economic outlook.

In May 2017, the balance of industrialists' opinion on their past activity has edged down while that on personal production expectations is virtually stable. Both are significantly above their normal level.

Business managers are much more upbeat than in April on general production prospects for the sector. The corresponding balance has jumped and is significantly above its long-term average, that it has exceeded since February 2015.

In May, their opinion on overall and export order books is almost unchanged, the corresponding balances being significantly above normal.

Finally, almost as industrialists as in April consider that finished-goods inventories are below normal: the corresponding balance remains below its long-term average.

The business climate in manufacturing in April 2017 has been slightly raised from its first estimation last month, from 108 to 109, due to late answers from businesses that have been taken into account.

The stability in the business climate in industry in May comes from a slight decrease in transport equipment and in “other manufacturing”, offset by a slight increase in equipment goods and in food products and beverages.

In May, the business climate has increased by one point in the manufacture of food products and beverages, at 104, thus remaining above normal. All balances of opinion have contributed to this improvement, except that on past activity, which has declined.

In the manufacture of machinery and equipment goods, the business climate has increased by one point reaching 110, its highest level since March 2008. This further increase comes from a further improvement in the balance of opinion on overall and export order books, which have reached their highest level since April 2008.

In the computer, electronic and optical product industry, the business climate has recovered, hitting its highest level since October 2015. It has slightly increased reaching a level unseen, since June 2011 in electrical equipment and since April 2011 in machinery and equipment.

In the manufacture of transport equipment, the business climate has decreased by one point but, at 105, remains above its long-term average. This slight fall mainly comes from a fall in the balance on past activity.

In the manufacture of motor vehicles, trailers and semi-trailers as in other transport equipment, the business climate has slightly decreased, albeit remaining above normal.

In overall “other manufacturing”, the business climate has decreased by one point, after having reached its highest level since June 2011. Its level (107) remains significantly above normal. This slight decline comes from the drop in the balances on order books and on past activity. Its is partly offset by a further increase in that on personal expectations.

In chemicals and clothing-textiles, the business climate has fallen back albeit remaining above normal. It is stable in wood-paper and in the “other manufacturing industries”. However, it has improved in rubber and plastic products and in chemicals, reaching its highest level since mid-2011.