July 27, 2023
Monthly business survey (goods-producing industries) in France – July 2023
According to the business managers surveyed in July 2023, the business climate in the manufacturing industry is stable. At 100, the synthetic indicator remains at its long-term average level. The balances of opinion on the order-books and on the past production have risen while the one on the change in production over the next three months has fallen sharply.
The balances of opinion on the order-books have improved
In July 2023, in the manufacturing industry, the balance of opinion on the change in production over the last three months has improved and has gone back above its average. On the contrary, the balance of opinion on the personal production prospects over the next three months has largely degraded and has gone back below its average. It has reached its lowest level since November 2020. This balance has been mainly driven down by the “other transport equipment” (due to production constraints) and the “other manufacturing”. However, the general production prospects in the industry have remained unaltered, as well as the balance of opinion related to economic uncertainty felt by the business managers.
The balance of opinion associated with the level of the overall order-books has increased again and has moved away from its average. The one associated with the level of the foreign order-books has distinctly straightened up after three months of decline in a row and has gone back above its own.
The balance of opinion associated with the current level of the inventories of finished-goods has improved by a few and has moved away from its average.
The balances of opinion associated with the past and expected change in the workforce size have slightly diminished but both of them remain largely above their average.
The balance of opinion related to the expected trend in selling prices over the next three months has increased again and has gone back above its long-term average.
The share of companies declaring sourcing difficulties as a factor limiting their production has also increased again, at 23%. The share of companies declaring being limited in their production by workforce shortage has also increased for the second month in a row and has gone from 21% to 25%. These shares remain well above their respective averages.
The business climate has rebounded in the manufacture of food products and beverages, while remaining degraded
In July 2023, in the manufacture of food products and beverages, the business climate indicator has clearly rebounded after four months of decline. It has especially been driven by the balances of opinion on the overall order-books and on the past change in production.
In the manufacture of machinery and equipment goods the business climate has improved somewhat and has moved away from its average.
The business climate has improved in the manufacture of transport equipment. It has got better in the manufacture of motor vehicles, trailers and semi-trailers, driven by the balance of opinion on the past production. In the “other transport equipment” the climate has strongly improved because of the increase in the balances of opinion on the overall and foreign order-books. The synthetic indicator has reached there its highest level since 2021.
Finally, the business climate has deteriorated in the “other industries” sector. The synthetic indicator remains under its long-term average since September 2022.
Source: INSEE
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