Informations Rapides · 21 January 2021 · n° 012

In January 2021, the business climate is virtually stable in services Monthly survey of services - January 2021

According to the business managers surveyed in January 2021, the business climate in services is virtually stable. At 91, the business climate composite indicator has gained 1 point but remains below its long-term average (100).

In January 2021, business managers are slightly less pessimistic than in the previous month. The balance of opinion on the general outlook for the sector activity has increased slightly after a sharp rebound in the previous month but remains below its average. The balance on expected demand for the next three months and the one on expected activity have also continued to recover slightly while remaining below their respective average.

Conversely, the balance of opinion on activity over the past three months has declined again in January and has moved away from its long-term average.

The balances of opinion on selling prices, both past and expected, have declined very slightly and thus remain below their average level.

About employment, business leaders are rather mixed: the balance of opinion on the workforce size for the last three months has declined sharply again and stands well below its average. About the balance on expected workforce size, it has increased slightly again but also remains below its average. Besides, slightly fewer business leaders than in October have reported difficulties in recruitment but this proportion remains well below its average level.

The balance of opinion on past investment has declined and remains below its average level. The one on expected investment for the next three months has fallen back and also remains below its average.

Among the obstacles preventing them from increasing their activity, business leaders have reported more often difficulties related to demand than to supply, as in October and as since July 2020.

In January, the balances of opinion on the operating balance result, both expected and especially past, have decreased sharply compared to October 2020.

The balance on the cash position is virtually stable compared to October and remains well below its average.

In the sub-sector of road freight transport, the business climate has deteriorated (- 4 points). At 95, it stands below its long-term average. In particular, the balances on past activity, on expected demand and on expected workforce size have declined sharply.

In accommodation and food services, a sub-sector among the most affected by the health measures, the business climate is less deteriorated than in the previous month (+ 5 points). However, at 72, the indicator remains well below its average. Business leaders who responded to the survey have expressed some hope: the balances of opinion on the general outlook for the sector activity and on expected demand for the next three months have increased sharply and have returned to their October level. Nevertheless, the balances on past activity and on past employment have declined sharply again.

In the other sub-sectors, the business climate have varied little: it is slightly better in information and communication and in administrative and support services activities, slightly more deteriorated in real estate activities, stable in professional, scientific and technical activities. The indicator remains below its average in all these sectors.