Informations Rapides · 20 January 2022 · n° 15

In January 2022, the business climate in the building construction industry has withdrawn while staying at a high level Monthly survey of building - January 2022

In January 2022, the business managers in the building construction industry are less confident about the activity prospects. The composite indicator has decreased by two points, to 113, while remaining largely above its long-term average (100). The balances of opinion on activity, past as well as future, have mostly contributed to this fall.

In January 2022, building contractors are much less optimistic than in the previous month about their upcoming activity: the corresponding balance has decreased strongly while staying significantly above its long-term average. The balance of opinion of business managers on their activity over the last three months has decreased markedly too, while remaining well above its average.

The business managers’ opinion on the general business outlook of the sector, measured quarterly, has also deteriorated: the corresponding balance of opinion stands however well above its long-term average.

Overall, almost as many business managers as in the previous month find it difficult for them to predict the future development of their business situation. The corresponding balance is virtually stable.

In January 2022, the production capacity utilisation rate is virtually stable. At 92.7%, it stands above its long-term average (88.8%).

Somewhat fewer business managers than in the previous month have reported that obstacles are limiting their production: their proportion has withdrawn but remains above its average level. Thus, 43% have been facing difficulties due to workforce shortage, a share decreasing this month, and 29% of them have reported supply difficulties, a share also decreasing in comparison to 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, has slightly risen. This month, a little more than half of business managers have reported to be in this situation, against a third in average in the long term. More precisely, almost a quarter 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 less important than last month but much larger than in average. The share of business managers unable to increase their production and facing supply difficulties has been virtually stable since June 2021, much higher than in average.

In January 2022, business managers are much more numerous than in the previous month to report that they will increase their prices over the next three months. The corresponding balance of opinion has sharply risen for the fourth consecutive month and has reached a level unseen since autumn 1982.

Roughly as many business managers as in October 2021 have indicated an improvement in their cash-flow position. The corresponding balance is virtually stable and remains superior to its long-term average. The balance of opinion on payment periods is also virtually stable, at a level inferior to its own.

In January 2022, the opinion of business managers about their workforce size is less positive than last month. The balance of opinion on the upcoming change in their workforce size for the next three months has fallen back but stays far above its long-term average. The balance on the change in workforce size over the last three months has decreased more clearlybut remains above its average as well.

In January 2022, far fewer business managers than last month have deemed the level of their order books to be higher than usual: the corresponding balance has slipped back markedly but remains well above its long-term average. Besides, given their staff size, building contractors consider that their order books provide 8.7 months of work, an amount of time a bit lowerthan in the previous month and that remains significantly above its long-term average (5.9 months).

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