Cooling Economic Outlook - December 2022


Conjoncture in France- December 2022

Focus - Recent trends in margin rates: wide disparities between branches in a context of general price increases

Margin rate, the ratio of gross operating surplus (GOS) to value added, can be used to analyse the profitability of the French economy. In Q3 2022, after the strong trends observed during the health crisis, its level was close to its 2018 average. However, changes in margin rate differ according to branch of activity, with recent gains being concentrated in the energy and transport services branches.

By breaking down changes in margin rates and gross operating surpluses in the branches according to the main economic and accounting factors the role of the different changes in prices can be highlighted in a context of rising input costs and the return of inflation. Thus, the increase in gross operating surpluses of the energy and transport services branches is because the rise in their selling prices more than offset the rise in their intermediate consumption prices and their hourly wages paid. For other branches, however, these increases were not offset and the gross operating surplus fell in industry, excluding energy, while remaining stable in services excluding transport. In addition to the wide disparities between branches, there is also sometimes a considerable variety within the branches themselves, especially in transport services...

Conjoncture in France

Paru le :12/01/2023