Informations Rapides · 28 March 2023 · n° 77

In March 2023, the business climate in manufacturing industry has slightly folded Monthly business survey (goods-producing industries) - March 2023

According to the business managers surveyed in March 2023, the indicator of the business climate in the manufacturing industry has folded a little, after three months of slight increase. At 104, the synthetic indicator has lost one point but is nevertheless above its long-term average. The balances of opinion on the past and future change in production explain the decline of the synthetic indicator.

In March 2023, the balance of opinion on the past change in production has shrunk after three consecutive months of rise. The one on the personal prospects of production for the next three months has also diminished and has reached its lowest level since September 2022. Both of them remain above their average. The balance of opinion associated with the general production expectations is almost stable and remains above its average.

The balance of opinion associated with the current level of the inventories of finished-goods has decreased and is just above its average.

The balances of opinion on the level of order-books, overall as well as foreign, have grown for the second and third months respectively and have moved away from their average.

The balance of opinion related to the expected trend in selling prices during the next three months is stable at a high level. The one related to the economic uncertainty felt by the business managers has rebounded.

The balances of opinion associated with the past and expected change in the workforce size remain to remarkably high levels. The one related to the expected change in the workforce size has even reached its highest level since the beginning of this series (January 2003).

The share of companies declaring sourcing difficulties as a factor limiting their production has continued to surge back. It amounts to 27% in March 2023, after having reached 45% in July 2022. Likewise, the share of companies declaring being limited in their production by workforce shortage has diminished, to 18%. These proportions remain however well above their average.

In the manufacture of food products and beverages the climate has degraded in March 2023: the synthetic indicator has gone back under its average. It has been notably pulled down by the balance of opinion on the change in production over the last three months, which has reached its lowest level since September 2022.

The business climate remains favourable in the manufacture of machinery and equipment goods. In particular, in the manufacture of computer, electronic and optical products, the balance of opinion on the expected change in production is at its highest since 2000.

The business climate is stable in the manufacture of transport equipment. It has deteriorated in the manufacture of motor vehicles but remains above its average. In the manufacture of other transport equipment, the climate has slightly improved and remains above its own. The balance on the past production has reached a record level since the beginning of this series (1990).

Finally, the business climate has improved in the so-called “other industries” sector and is just below its average. The indicator has increased in all sub-sectors, in particular in the textiles, clothing industries, leather and footwear industry, as well as in the manufacture of metallurgy and other metal products. In the most energy-intensive "other industries" sub-sectors (metallurgy, chemicals) the indicators remained below their average.

The business climate in manufacturing industry of February 2023 has been revised upwards by one point, due to the inclusion of late responses.