Informations Rapides · 21 April 2022 · n° 100

In April 2022, the business climate in the building construction industry remains favourable but supply difficulties have increased Monthly survey of building - April 2022

In April 2022, the business managers in the building construction industry are slightly more positive on their past activity, but far less on their activity prospects. Supply difficulties are deemed fiercer and many more business leaders than the previous month consider price increases. All in all, the business climate composite indicator has increased.

In April 2022, building contractors are slightly more positive than in the previous month about their past activity. The corresponding balance of opinion has barely progressed, above its long-term average. Conversely, business managers are much less optimistic about their upcoming activity for the next three months. The corresponding balance of opinion has fallen back strongly while remaining above its average.

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

More business managers than in the previous month find it difficult for them to predict the future development of their business situation. The corresponding balance has increased this month.

In April 2022, the production capacity utilisation rate is virtually stable. At 92.6%, it stands above its long-term average (88.8%).

As many business managers as in the previous month have reported that obstacles are limiting their production: their proportion is stable at 72%. Thus, 43% have been facing difficulties due to workforce shortage, a share virtually stable this month, and 39% of them have reported supply difficulties, a share markedly increasing in comparison to last month, and at the highest level since the beginning of the series (1998).

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. 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, less than 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 virtually stable and larger than in average. The share of business managers unable to increase their production and facing supply difficulties has increased this month: it has reached its highest level since the series exists (1990).

In April 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 is at its highest level since October 1981.

As for the balance of opinion on cash-flow position, it is virtually stable and remains superior to its long-term average. At the same time, the balance of opinion on payment periods has decreased and remains smaller than its average.

In April 2022, the balance of opinion on the past change in workforce size over the last three months has bounced back and lies clearly above its average. The balance on the upcoming change in workforce size over the next three months is stable, well above its long-term average.

In April 2022, slightly fewer business managers than last month have deemed the level of their order books to be higher than usual: however, the corresponding balance remains largely above its long-term average. Besides, given their staff size, building contractors consider that their order books provide 8.6 months of work, an amount of time as high as the previous month and that remains significantly above its long-term average (5.9 months).