Informations Rapides · 22 July 2021 · n° 187

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

According to the business managers surveyed in July 2021, the business climate in services is stable. At 112, the business climate indicator that synthetizes it therefore remains well above its long-term average (100).

In July 2021, the business leaders remain optimistic overall but the balances have varied in a more diverse way than in the previous month. The balance of opinion on the general outlook for the sector activity has fallen back but remains well above its long-term average. The balance on expected demand for the next three months has decreased sharply but remains above its average. The balance on expected activity is virtually stable and stands well above its average.

The balance of opinion on activity over the past three months has improved sharply in July and has further exceeded its long-term average.

More business leaders than in the previous month have reported an increase in their sales prices: the balance of opinion on the recent change in selling prices has increased again and has returned above its average level. The one on the expected change in selling prices has also continued to increase and therefore remains above its average.

About employment, the balance of opinion on the change in workforce size over the last three months has increased again and has returned above its average level. Concerning the balance on expected workforce size, it has edged down but remains above its average. Besides, a lot more business leaders than in April have reported difficulties in recruitment: this proportion stands now well above its average level. These difficulties affect all sub-sectors but are particularly strong in accommodation and food services.

The balance of opinion on investment over the past three months is virtually stable, just above its average. and remains below its average level. The one on expected investment is also virtually stable and remains slightly above its average.

Among the obstacles preventing them from increasing their activity, slightly fewer business managers than in April have reported demand difficulties, while the share of those experiencing supply difficulties has increased.

In comparison with April 2021, the balances of opinion on operating balance, past and expected, have increased sharply and have returned above their respective average.

The balance on the cash position has increased compared to April and has returned above its average.

In July 2021, the business climate in services has varied in contrasting ways in service sub-sectors: it has improved again in accommodation and food services but it has fallen back in road freight transport.

In accommodation and food services, the business climate has improved sharply again in July 2021. At 132, the indicator that synthetizes it has gained 5 points and therefore has reached a new highest level since the beginning of the series (January 1989), reflecting the gradual reopenings in this sub-sector. The forward-looking balances – general outlook for the sub-sector, expected demand and expected activity – stand far above their respective average. In particular, the balance on general outlook has reached its highest level since the beginning of the series (June 2000).

In road freight transport, the business climate has fallen back sharply but remains above its average. Indeed, the forward-looking balances have decreased very sharply.

In real estate activities, the business climate has weakened slightly but remains well above its average.

In professional, scientific and technical activities, the business climate has improved slightly again and stands above its average.

In information-communication and administrative and support services, the business climate is virtually stable and remains above its average.