Informations Rapides · 24 November 2021 · n° 299

In November 2021, the business climate in the building construction industry is very favourable despite the supply constraints Monthly survey of building - November 2021

In November 2021, the business climate in the building construction industry has slightly increased: it has gainedone point to 114 and stands well above its long-term average (100).

In November 2021, the business managers are more positive thanin the previous month about the change in their activity over the last three months: the corresponding balance of opinion has bounced back and remains well above its long-term average.

Concerning their upcoming activity for the next three months, business managers remain confident. The corresponding balance of opinion has been virtually stable, markedly above its average.

In November 2021, more business managers than last month consider that the level of their order books is higher than usual: the corresponding balance of opinion, already well above its long-term average, has recovered after a strongdrop in the previous month. Besides, given their present staff, the construction business managers assess that their order books provide them with 8.8 months of work, an amount of time as high as in the previous month andsignificantly above its long-term average (5.9 months).

In November 2021, the production capacity utilisation rate is on the rise, following an upward trend since the beginning of the year. At 92.9%, it stands above its long-term average (88.8%).

Roughly as many business managers as last month have reported that obstacleshave been limiting their production: their proportion has been virtually stable since June 2021. A bit less than half of business managers are facing difficulties due to workforce shortage, a share virtually stable this month, and 29%reportsupply difficulties, as last month.

At the same time, the share of companies at the limit of their production capacity, that is to say that could not produce more with their current means if they received more orders, is stable at a high level. Since July, nearly half of business managers have reported to be in this situation, against a third in averagein the long term. More precisely, 28% of business managers consider themselves both unable to increase their production in case of additional orders and facing difficulties due to a lack of personnel, a share again slightly on therise andlarger than in average. Likewise, the share of business managers unable to increase their production and facing supply difficulties has varied little since July, and remains much higher than on average.

In November 2021, evenmore business managers than in the previous month have reported that they would increase their prices over the next three months. The corresponding balance has increased again strongly and has reachedits highest level since 1983.

In November 2021, the balance of opinion of business managers about the upcoming change in their workforce size for the next three months has increased again and has reachedits highest level since August 2008. The balance of opinion on the change in workforce size over the past three months has slightly risen for the second consecutive month; it remains markedly above its long-term average.