Informations Rapides · 22 April 2021 · n° 103

In April 2021, the business climate has deteriorated in services Monthly survey of services - April 2021

According to the business managers surveyed in April 2021, the business climate in services has deteriorated At 91, the business climate indicator that synthetizes it has lost 3 points and therefore remains below its long-term average (100).

In April 2021, business leaders are more pessimistic overall than in the previous month. The balance of opinion on the general outlook for the sector activity has fallen back sharply; it has moved away from its long-term average. The balances on expected activity and on expected demand for the next three months have also decreased and the gap to their respective average has widened.

The balance of opinion on activity over the past three months has improved again in April but without returning to its long-term average.

The balance of opinion on the recent change in selling prices has barely recovered and the one on the expected change in selling prices is stable. They remain below their average level.

About employment, the balance of opinion on the change in worforce size over the last three months is virtually stable and the balance on expected workforce size has edged down. They remain below their average. Besides, more business leaders than in January have reported difficulties in recruitment: this proportion stands slightly below its average level.

The balance of opinion on past investment is stable and remains below its average level. The one on expected investment has fallen back and also remains below its average level.

Among the obstacles preventing them from increasing their activity, business managers have reported more often difficulties related to demand than to supply as since July 2020. However, fewer than in January have reported demand difficulties, while the share of those experiencing supply difficulties is virtually stable since the beginning of the year.

In comparison with January, the balance of opinion on the expected operating balance result is virtually stable and the one on the past operating balance result has increased in April.

The balance on the cash position has increased compared to January but remains below its average.

In April 2021, the business climate in services has varied in contrasting ways in service sub-sectors: it has dropped back in accommodation and food services while it has continued to rise above its average in the road freight transport.

In accommodation and food services, a sub-sector among the most affected by the health measures, the business climate has deteriorated sharply. At 73, the indicator has lost 5 points and stands at a particularly low level.

In professional, scientific and technical activities and in administrative and support services, the business climate has also deteriorated: in those two sectors, the composite indicator has lost 3 points after a brief improvement in March, and stands well below its average.

On the other hand, in the road freight transport, the business climate has improved again, above its long-term average. In information and communication too, the business climate has improved and has returned above its average.

In real estate activities, the business climate is virtually stable and stands just above its average.

The business climate indicator of March 2021 has been revised downwards by one point due to the inclusion of late responses from businesses.