Informations Rapides · 25 April 2024 · n° 97

In April 2024, manufacturers are more favourable than three months ago concerning the foreign demand Quarterly business survey (goods-producing industries) - April 2024

In April 2024, business leaders have expected a clear rebound of the demand, particularly concerning the foreign demand. They have also considered that the demand in industrial products on the past quarter has been a little more dynamic. Finally, production bottlenecks and hiring difficulties in the industry have slightly decreased but remain significant.

Business leaders’ opinion concerning the change in demand, both global and foreign, for the last and the next three months has improved in April 2024. The balances of opinion related to the expected change of the demand have clearly rebounded, particularly the one related to the foreign demand. This last has gone back clearly above its average and the balance related to the expected global demand has gone back just above its one. Concerning the past demand, the balances of opinion associated with both the global and the foreign demand have rebounded. The one relative to the global demand has moved closer to its average, the one associated with the foreign demand has moved away from its one.

In April 2024, the share of companies at the limit of their production capacity (production bottlenecks) has decreased but remains above its long-period average: 30% have deemed that they would not be able to increase their production with their current means if they received more orders. Moreover, more business leaders than three months ago have considered their production capacities sufficient given the expected change in orders over the coming months. The associated balance of opinion has clearly rebounded and has moved closer to its average. The production capacity utilisation rate has slightly decreased: at 80% it has moved away from its average level.

The balance of opinion on the expected change in investment over the next three months has rebounded and has gone back above its average.

In April 2024, hiring difficulties, decreasing from October 2022, have diminished again but are still strong. 52% of business leaders have declared experiencing it, it is the lowest level of the series since July 2021, though remaining highly above its long-period average.

Business leaders have considered that their selling prices have increased by 0.2% on average since January 2024. For the next three months, they have expected that their prices should be almost stable: according to them selling prices should grow by 0.1% on average in industry.

The balance on the general prospects of change in hourly wages in industry has also folded back clearly and has moved below its average.

The balance related to the cash-flow situation of industrial enterprises is almost stable, just below its average.

In the manufacturing industry, more business leaders in April 2024 than in October 2023 have estimated an increase of their investments in 2023. This upward revision concerns every sub-sectors but more clearly the manufacture of transport equipment and the “other industries” where the balances of opinion are the highest.

Regarding the change in investments in 2024, manufacturers have made a second judgment on the expected change in their investments, after the one of October 2023. The associated balance of opinion has decreased for the manufacturing industry, particularly in the manufacture of machinery and equipment goods and in the manufacture of transport equipment. On the contrary, it has increased in the “other industries”.