Informations Rapides · 24 February 2021 · n° 043

In February 2021, the business climate in manufacturing is slowly continuing to recover Monthly business survey (goods-producing industries) - February 2021

According to the business managers surveyed in February 2021, the business climate in industry has once again slightly improved, more or less at the same pace as since December 2020. It has risen by 1 point and now stands at 97, however remaining below its long-term average (100). The better opinion of manufacturers on their order books and their personal production prospects explains most of this slight improvement in the economic climate.

In February 2021, industrialists' opinion on overall order books has clearly improved, as it had last month. Although this balance of opinon has increased in all industry sub-sectors, the answers from the manufacture of food products and beverages explain, first and foremost, this improvement. Nevertheless this balance remains well below its long-term average, mostly because of its low level in the manufacture of transport equipment.

The balance of opinion on foreign order books has slightly increased this month, while also remaining at a deteriorated level.

In February 2021, industrialists have been a little more optimistic about their personal production prospects, confirming the rebound following the exit from the second lockdown. However, in the motor vehicles industry, this balance has sharply fallen back. The balance on general production prospects in the French industrial sector has picked up a little, after a decline in January: it has reached its long-term average.

The industrialists’ opinion on their past production (of the past three months) has been virtually stable just above its average for the second month in a row.

Stock levels are a little more often considered lower than the normal level compared to January. The corresponding balance has slightly fluctuated around a level below its average since August 2020.

Finally, regarding employment, the opinion of industrialists has remained essentially unchanged. The balances on expected and past change in workforce size have very slightly shrunk. Both of them remain close to their long-term average.

In February, the business climate has markedly improved in the manufacture of food products and beverages and has remained broadly stable in the other branches of the industry.

Between January and February 2021, the business climate in the manufacture of food produtcts and beverages has gained 6 points, driven by the increase in the balance on overall order books, but also that on past production. Yet at 96, it remains below its average.

The business climate in the so-called "other industries" branch has slightly recovered and stands right above its average. The climate in the manufacture of basic metals and fabricated metal products has for instance gained 4 points.

The business climate in the branch of machinery and equipment goods has lost one point but has remained above its average level. Due in particular to the "other transport equipment" branch (excluding automobiles), the climate has remained very poor in the manufacture of transport equipment. It stands in February at 89, barely above its recent low point in December.

The business climate in manufacturing in January 2021 has been revised down by two points due to the inclusion of late responses from some companies. In particular, the business climate in the manufacture of transport equipment of January was revised downwards by 5 points.