21 December 2017

2017- n° 338

In December 2017, the business climate in services improves again Monthly survey of services - December 2017

According to business managers surveyed in December 2017, the business climate in services has improved again. The business climate composite indicator has gained two points and reached 111, its highest level since April 2011.

The turning point indicator remains in the area indicating a favourable short-term economic situation.

The balances of opinion on past activity, on expected activity and on expected demand have increased in December. The balance on past activity is at its highest level since April 2008, the one on expected activity since February 2008 and the one on expected demand since April 2011. The balance on general outlook, which relates the assessment of business leaders over their whole sector, has gone up again slightly.

In contrast to the balances of opinion on activity, those on selling prices and investments have decreased this month.

After a moderate decline last month, the balance on expected employment has increased sharply due to temporary work agencies and remains clearly above its long-term average. The one on past employment is virtually stable with, however, a decline in services except temporary work agencies.

In almost all the service sub-sectors, the business climate indicator is very high. In particular, it has improved markedly in accommodation and food service activities. In real estate activities, the climate remains clearly below its long-term average despite a small rebound this month.

In road transport, the climate indicator has advanced for the fifth month in a row (116). The balances on past activity, on expected demand, on past and expected employment have climbed. This increase is partly offset by a decrease in the balances on expected activity and on general outlook. All balances remain well above their average.

In accommodation and food services, the business climate has gained four points and reached 111, its highest level since October 2011. This rise is mainly due to the strong growth in the balances on past activity and on expected demand. However, the balance on past employment has declined sharply.

In information and communication, the business climate is stable, clearly above its long-term average. The balance on expected activity has gone up significantly and remains at its highest level since July 2011. In contrast, the balance on past activity has dipped while remaining well above its average.

After a fall in the two last months due to the sector of housing rental, the business climate has recovered a little in real estate activities and has gained two points. The balances on expected demand, on past employment and on general outlook have picked up whereas the balances on activity and on expected employment have decreased.

The business climate in professional, scientific and technical activities remains at 110, well above its long-term average. The sharp increase in balances on past activity and on employment is offset by the decline in the balances on expected activity and on expected demand.

In administrative and support service activities, the business climate indicator has increased for the fifth month in a row. At 112, it stands at its highest level since July 2007. All the balances of opinion are markedly above their long-term average and have increased this month, except the one on past employment.