24 April 2019

2019

In April 2019, industrialists’ opinion on expected demand has deteriorated Quarterly business survey (goods-producing industries) - April 2019

In April 2019, the balances of industrialists' opinion on overall and foreign expected demand have sharply dopped. They respectively reached their lowest level since January 2015 and July 2016. However, they remain above their long term average. Regarding the recent demand trend, industrialists’ opinion on foreign demand has also fallen back after a brief recovery in January 2019, reaching its lowest point since April 2014, whereas the one on overall demand is stable and remains slightly above its long-term average.

In April 2019, industrialists report that they have used their machinery and equipment slighlty less intensively than in January. At 84.4%, the production capacity utilisation rate has continued its gradual decline after having reached in January 2018 a ten year peak.

Slightly fewer industrialists than in January consider that they could not produce more if they received more orders: production bottlenecks affect one third of businesses. This share had reached in October 2018 its highest level since 2000. The proportion of industrialists indicating difficulties of supply exclusively has oscillated around 30% since the beginning of the year 2018, well above its average. The share of industrialists reporting difficulties of demand exclusively has slightly increased again, but remains well below its average.

In April 2019, more industrialists than in January 2019 have reported an increase in their workforce size rather than a decrease in the last three months. The same proportion as in January foresees job growth rather than job cuts over the next three months. Both corresponding balances stand significantly above their long-term average.

Among industrialists, 46% have experienced hiring difficulties. This share is stable at his highest level for almost twenty years.

According to industrialists, selling prices in the manufacturing industry have slightly increased in Q1 2019 (+0.5% after a stability in the previous quarter). Business managers foresees a similar price increase in Q1 2019 .

Only 11% of the industrialists have experienced cash-flow problems – this share has been virtually stable since April 2017 and remains below its long-term mean (14%).

Slightly more industrialists than in January report an improve in their competitive position for all three markets (domestic, EU and outside the EU markets). The corresponding balances have slightly increased – however, that regarding the foreign markets outside the EU remains below its long-term average. Industrialists are more optimistic on general export prospects: after reaching its lowest level since December 2014 in January, the corresponding balance has bounced back and has risen above its long-term average.