Informations Rapides · 24 November 2022 · n° 302

In November 2022, the business climate in manufacturing industry has slightly degraded Monthly business survey (goods-producing industries) - November 2022

According to the business managers surveyed in November 2022, the indicator of the business climate in the manufacturing industry has diminished again. At 101, the composite indicator has lost two points and gets closer to its average (100). The balances of opinion related to the past change in production and to the level of the overall order-books have contributed the most to the decline of the composite indicator. Furthermore, the balance related to the finished-goods inventory has reached its highest level since 2008.

In November 2022, the balance of opinion on the past production has fallen under its average. The general prospects of production in the sector are again considered less favourable than in the previous month. Conversely, the balance of opinion on the personal production expectations over the next three months has increased for the second consecutive month and has moved away from its average.

The balance related to the expected trend in selling prices during the next three months has bounced back and remains well above its average.

The balance of opinion on economic uncertainty felt by the business managers is almost stable and remains high.

The balance related to the current level of the inventories of finished-goods has strongly increased and has reached its highest level since 2008. In the electrical equipment and transport equipment, it has even reached levels not seen since the beginning of these series (1990). In the sector of the manufacture of food products and beverages, it has recovered whereas business leaders had previously estimated that their stocks were well below their normal level.

The balances of opinion on the overall and foreign order-books have diminished again, after a rebound in October. They both remain above their average.

The balance of opinion on the past workforce size has increased again while the one on the expected workforce size is almost stable. They remain well above their average.

The share of companies declaring supply difficulties as a factor limiting their production has diminished for the fourth month in a row. In November, 33% of enterprises have declared suffering from them, a share that remains largely above its long-term average. The proportion of companies declaring themselves to be limited in their production by a lack of personnel also falls, to 21%, while remaining above its average.

The business climate in the branch of the so-called “other industries” is stable. The balances of opinion related to the evolution of their own production have increased. On the contrary, the degradation of the balances of opinion on the order-books has continued. In the metalworking sub-sector, the business climate has darkened and the indicator falls to its lowest level since 2020, well below its average. In the chemical industry too, the climate indicator has continued to fall: it is the lowest in this sub-sector.

In the manufacture of food products and beverages, the indicator of the business climate has declined, largely due to the drop in the balance of opinion on overall order-books. This balance nevertheless remains above its average.

Similarly, the business climate in the branch of machinery and equipment goods has degraded, driven by the fall in the balance of opinion on order-books. It nevertheless remains well above its average. In the sub-sector of computer, electronic and optical products, business managers have considered that their overall order-books were less filled up than in the previous month, when the associated balance had reached a level not seen since 2003.

The business climate indicator in the manufacture of transport equipment has declined but remains above its average. In the manufacture of motor vehicles, it has significantly degraded and fallen below its average: this change is mainly explained by the fall in the balance of opinion on past production and by the rise in the one on finished-goods inventory, which has reached a level not seen since 2009. On the other hand, in the manufacture of other transport equipment, the business climate has improved for the second consecutive month.

The business climate in manufacturing industry of October 2022 has not been revised (after rounding).