Informations Rapides · 28 March 2023 · n° 78

In March 2023, the business climate in the building construction industry has deteriorated slightly again Monthly survey of building - March 2023

According to the business managers surveyed in March 2023, the business climate in the building construction has degraded slightly again. At 111, the synthetic indicator has lost one point; it remains nonetheless well above its long term average. This decline is due to the balance of opinion on the expected activity, which has been dropping for three months.

In March 2023, building construction managers’ opinion about their expected activity has deteriorated sharply. The corresponding balance of opinion has been dropping for three consecutive months but remains above its average. However, building contractors have a more positive view of their past activity than last month: the corresponding balance of opinion has rebounded, moving away from its average.

As many business managers than in the previous month have considered the evolution of their company situation to be unpredictable. The balance of opinion on the economic uncertainty is stable.

In March 2023, slightly less building contractors than in last month have considered the level of their order books to be higher than average. The corresponding balance has gone down for the fifth consecutive month. It remains however at a level way above its long term average. Given their staff size, building contractors have considered that their order books provide them with 8.5 months of work, a diminishing duration, standing at its lowest level since March 2021, but which remains above its long term average.

In March 2023, the production capacity utilisation rate is almost stable: it stands at 92.2%, above its long term average (88.9%).

Slightly less business managers than in the previous month have reported facing obstacles limiting their production (66%). This proportion has been slowly dropping for three months. The share of business managers who declared facing a workforce shortage (45%) has dropped but remains well above its average. The proportion of those declaring supply difficulties stands at 17% in March (it was 33% in October 2022).

One in two companies has reported to be at the limit of their production capacity (production bottlenecks), that is to say that they could not produce more with their current means if they were to receive more orders. 27% of business managers considered themselves unable to increase their production in case of additional orders due to a lack of personnel, and 10% due to supply difficulties, both of which are stable and above their average.

In March 2023, less business managers than in the previous month have announced that they will increase their prices in the upcoming three months. The corresponding balance of opinion has diminished sharply: following a downward trend since the autumn of 2022, it remains however well above its long term average.

In March 2023, the balances of opinion of business managers regarding their expected and past workforce size have dropped slightly. Both remain above their average.

The business climate in the building construction industry of February 2023 has not been revised (after rounding).