26 September 2017

2017- n° 250

In September 2017, the business climate in manufacturing remains well above average Monthly business survey (goods-producing industries) - September 2017

According to the business managers surveyed in September 2017, the business climate in industry is virtually stable after having reached in August its highest level since December 2007.

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

After a sharp rise in August (+12 points), the balance of opinion on past activity has fallen substantially in September (−10 points) but remains significantly above average. The one on their personal production expectations, already well above its mean in August, has increased again.

Manufacturers are also more optimistic about general production prospects for the sector. The corresponding balance is back on track and has reached its highest level since October 2000.

The balance on global order books has also picked up and has reached its highest point since March 2008. The one on export order books is stable, significantly above average.

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

In the manufacture of food products and beverages, the business climate has dropped by three points in September. At 107 it remains well above its long-term average. This downturn mainly comes from a decrease in the balance of opinion on past activity, and to a lesser extent, in that on personal production expectations.

In the manufacture of machinery and equipment goods, the business climate is virtually stable after having reached in July its highest level since March 2008. At 108, it stands significantly above normal. The sharp increase in personal production expectations is practically offset by a drop in the balances on past activity and export orders.

The business climate has improved in machinery and equipment, is stable in the computer, electronic and optical product industry and has deteriorated in electrical equipment.

In the transport equipment manufacture, the business climate has remained stable since July at 109, well above its long-term average. The decrease in the balances on past activity and personal productions expectations is offset by an increase in those on global and export order books.

The business climate is stable in the manufacture of motor vehicles, trailers and semi-trailers while it has increased in other transport equipment.

In overall “other manufacturing”, the business climate is stable at 108, significantly above average. The decrease in the balance on export order books and on past activity is offset by an increase in that on personal production expectations.

The climate remains above its mean in all subsectors. In particular, the business climate indicator has brightened in rubber and plastic products and has bounced back in wood-paper and in clothing-textiles. It remains stable in basic metals and in chemicals. In contrast it has edged down in “other manufacturing industries”.