Informations Rapides · 20 January 2022 · n° 18

In January 2022, the business climate has deteriorated again in services Monthly survey of services - January 2022

According to the business managers surveyed in January 2022, the business climate has deteriorated again in services. At 105, the business climate indicator that synthesizes it has lost two points. However, it remains above its long-term average (100).

In January 2022, business managers are again less confident than in the previous month. The balance of opinion on the general outlook for the sector activity has decreased sharply again while it remains above its long-term average. The balance about economic uncertainty felt has continued to increase slightly. Concerning their own prospects, the business managers are overall less optimistic than in December on forthcoming demand: the balance of opinion on expected demand has decreased sharply again, whereas the one on expected activity is virtually stable. Both balances stand just above their long-term average.

The balance of opinion on activity over the past three months has decreased again but remains well above its average.

More business managers than in the previous month have expected an increase in their sales prices over the next three months: the balance of opinion on the expected change in selling prices has recovered slightly and has reached a level unseen since 1990. The one on the recent change in selling prices is stable, at a high level. Both stand well above their average.

About employment, the balance of opinion on the change in workforce size over the last three months has increased again, due to temporary work agencies. Concerning the balance on the expected workforce size, it is virtually stable, just above its average. Besides, a few more business managers than in last October have reported difficulties in recruitment: this proportion stands at its highest level since the beginning of the series (July 2000).

The balance of opinion on expected investment, at the highest level since 2007, has increased sharply compared to October.

Among the obstacles preventing them from increasing their activity, slightly more business managers than in October have reported demand difficulties – but the proportion remains well below its long-term average – while the share of those experiencing supply difficulties is stable, above its average.

The balance on the cash position is virtually stable compared to October, above its average.

In accommodation and food services, the business climate has deteriorated strongly in January. At 89, the indicator that synthesizes it has lost 10 points and stands well below its average. The forward-looking balances on activity have fallen in this sub-sector, well above their respective average. The balances of opinion about past and expected employment remain above their average.

In road freight transport, the climate has deteriorated sharply but remains above its average. In particular, the balances on expected activity and demand have decreased strongly.

In administrative and support services, the business climate has decreased sharply again and has reached its average level. Indeed, the balances on expected demand and the general outlook for this sub-sector have decreased markedly and have returned above their long-term average.

In information-communication and in professional, scientific and technical activities, the business climate has hardly moved and remains well above its long-term average.

In real estate activities, the business climate which was above its average level, has rebounded. In particular, the balance on expected selling prices has increased sharply, as well as the balances on past and expected activity.

The business climate indicator of December 2021 has been revised downwards by one point. This revision is mainly due to the inclusion of late responses from businesses.