24 August 2017

2017- n° 217

In August 2017, the business climate in manufacturing improves and reaches its highest level since December 2007 Monthly business survey (goods-producing industries) - August 2017

According to the business managers surveyed in August 2017, the business climate in industry has improved. The composite indicator that measures it has increased by 3 points. Already significantly above its long-term average (100), it has reached 111, its highest level since December 2007.

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

In August 2017, the industrialists' balance of opinion on their past activity has bounced back to its highest level since June 2011; that on personal production expectations has also recovered. Both are significantly above their mean.

Furthermore, business managers remain confident about the general production prospects for the sector. The corresponding balance is virtually stable significantly above its long-term average.

In August 2017, the balances of opinion on global and export order books are virtually stable, significantly above their average.

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

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

In August, the improvement in the business climate in industry comes from an improvement in the economic outlook in the manufacture of food products and beverages and in “other manufacturing”, partly offset by a downturn in machinery and equipment.

In August, the business climate in the manufacture of food products and beverages has regained three points. It stands at 112, which is significantly above normal. This upturn mainly comes from a rebound in the balance of opinion on past activity.

In the manufacture of machinery and equipment goods, the business climate has decreased by two points after having reached in July its highest level since March 2008. At 108, it remains significantly above normal. This downturn comes from a decline in the balances of opinion on past activity and on global order books.

The business climate has worsened in machinery and equipment, is virtually stable in the computer, electronic and optical product industry and has kept improving in electrical equipment where it has hit its highest level since November 2010.

In the manufacture of transport equipment, the business climate is stable at 109, significantly above its long-term average.

The business climate has improved slightly further in the manufacture of motor vehicles, trailers and semi-trailers while it has been virtually stable in other transport equipment since March 2016.

In “other manufacturing” as a whole, the business climate has increased by one point and has returned to its June level (108), significantly above normal. This slight improvement comes from an upturn in the balances of opinion on past activity and personal production expectations.

In particular, the business climate has returned above average in “other manufacturing industries”, has recovered in basic metals and has slightly improved in clothing-textiles. It is stable in wood-paper and in rubber and plastic products. However it has slightly decreased in chemicals.