23 November 2017

2017- n° 304

Already at a very high level, the business climate in manufacturing further strengthens in November 2017 Monthly business survey (goods-producing industries) - November 2017

According to the business managers surveyed in November 2017, the business climate in industry, already at a ten-year high, has increased again by one point. At 112, it has continued to rise above its long-term average (100).

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

The balance of opinion on past activity has significantly increased again in November and peaked at its highest since June 2011. The balance on their personal production expectations has edged down but remains well above its long-run average.

Manufacturers are increasingly optimistic about general production prospects for the sector. The corresponding balance, at its highest since August 2000, has improved for the third month in a row.

The balance on global order books, already at its highest point since March 2008, has increased by one point. That on export order books has inched down but remains significantly above average.

Lastly, in November, once again more industrialists consider that their finished-goods inventories are above normal. The corresponding balance remains nevertheless below its long-term average.

In the manufacture of food products and beverages, the business climate has increased by two points in November. At 113, it stands well above its long-term average. This further improvement mainly comes from an increase in the balance of opinion on past activity.

In the overall manufacture of machinery and equipment goods, the business climate is stable at 110, significantly above normal. In particular, the balance on overall orders has improved, although that on export orders has decreased.

The business climate has improved in electrical equipment while faltering in machinery and equipment and in the computer, electronic and optical product industry.

In the transport equipment manufacture, the business climate has improved by one point, to 110, reaching its highest level since June 2001. This is mainly due to the increase in the balances on global order books and on past activity.

The business climate has further improved in the manufacture of motor vehicles, trailers and semi-trailers while it has slightly weakened again in other transport equipment.

In overall “other manufacturing”, the business climate has risen by one point again, peaking at its highest level since April 2007 (111). It has been mainly driven by the increase in the balances on past activity and on personal production expectations.

In particular, the business climate indicator has brightened in clothing-textiles, wood-paper, rubber and plastic products and basic metals. In contrast it has declined again in chemicals and has fallen back in “other manufacturing industries”, while remaining above its mean in both subsectors.