22 March 2018

2018- n° 72

In March 2018, the business climate in manufacturing has weakened somewhat further while remaining favourable Monthly business survey (goods-producing industries) - March 2018

According to the business managers surveyed in March 2018, the business climate in industry has weakened a little but remains very favourable. The composite indicator has edged down by one point, after losing two points in February. It had reached a seventeen-year peak at the beginning of the year. At 111, it remains well above its long-term average (100).

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

The balances of industrialists' opinion on past activity and personal production expectations have further dropped in March. However, the two balances remain well above their long-term average.

Manufacturers are also less optimistic than in February about the general production prospects for the sector. The corresponding balance has slightly declined again, after reaching in January its highest level since July 2000.

Manufacturers consider their overall and export order books not as well filled. After reaching record levels since December 2007, the corresponding balances still remain at a very high level.

As many industrialists as in February consider that their finished-goods inventories are above normal. The corresponding balance remains below its long-term mean.

In the manufacture of food products and beverages, the business climate is stable in March. At 110, it remains well above its long-term average (100). The sharp increase in the balance of past activity is offset notably by the drop in the balances on order books.

In the overall manufacture of machinery and equipment goods, the business climate has further weakened a little; it had reached a ten-year high in January. This slight decrease comes from that in the balances on past and future activity, and on order books.

The business climate has slightly faltered in the computer, electronic and optical product industry and in electrical equipment, while it is stable in machinery and equipment

In the manufacture of transport equipment, the business climate has slightly weakened after reaching in January and February its highest level since June 2001. The decline in the balances on export order books and on past activity is partly offset by the improvement in those on global order books, in particular in the motor vehicles industry.

The business climate indicator is stable in the manufacture of motor vehicles, trailers and semi-trailers. In the manufacture of other transport equipment, it has declined again.

In overall “other manufacturing”, the business climate has dipped again by one point. At 109, it remains at a very high level. This slight drop is mainly due to a slight decrease in the balances on past activity and on global order books.

By subsector, the business climate indicator has declined in wood-paper and rubber and plastic products and, to a lesser extent, in basic metals. It is stable in clothing-textiles and “other manufacturing industries”. It has slightly picked up in chemicals.