23 May 2019

2019- n° 132

In May 2019, the business climate has slightly weakened in services Monthly survey of services - May 2019

According to business managers surveyed in May 2019, the business climate in services has slightly weakened. The business climate composite indicator has lost one point. At 106, it remains well above its long-term average (100).

Otherwise, the indicator of April 2019 has been revised upwards by two points because of late businesses’ answers that have been taken into account.

In May 2019, the business managers are a little less optimistic than in April on the general outlook for activity on their own sector. However, the balance of opinion on expected demand has increased. The balances on past and expected activity are stable or virtually stable. These four balances are well above their long-term average.

The balances on employment have decreased in temporary work agencies like in services except temporary work agencies, in particular concerning expected employment. In services as a whole, the balance on past employment has moved below its average, that on expected employment has returned to its.

The balance on past investments has increased again, contrary to that on expected investments, which has continued to decline. These two balances are nevertheless above their average level.

In May 2019, the turning point indicator remains in the area indicating an uncertain short-term economic situation.

The business climate has deteriorated in almost all sub-sectors, except in administrative and support services where it is stable. The indicator has strongly worsened in real estate activities. It has clearly decreased in road freight transport, in information-communication and in accommodation and food services. It has declined more slightly in professional, scientific and technical activities. However, the climate remains above its average in almost all sub-sectors but real estate activities which it has been below for 20 months.

In road transport, the business climate has deteriorated by three points but remains above its average, at 105. All balances of opinion have significantly decreased, remaining however above their long-term average.

In accommodation and food services, the climate has lost two points. At 107, it remains well above its long-term average. Most of balances have gone down, while remaining above their average level. Nevertheless, the balances on employment have recovered and moved above their average.

In information-communication, the business climate has lost two points; it remains above its average, at 104. The balances on employment have fallen and moved below their average: that on expected employment has reached its lowest level since August 2015. In constrast, the other balances remain above their average level and that on past activity has sharply increased.

In real estate activities, the climate has lost five points. At 94, it has moved away from its long-term average, which it has been below for 20 months. Almost all balances of opinion have declined and remain below their average; only that on expected employment is stable, at its average.

The business climate in professional, scientific and technical activities, has lost one point (at 108), but remains well above its average. The balances on employment and on the general outlook for activity have declined. In contrast, that on past activity has grown again. All balances are above their average.

In administrative and support service activities, the climate is stable at 101, just above its average. The increase in the balances on past activity, on expected demand and on expected employment is offset by the decline in the balances on general outlook, on expected activity and on past employment. The balances on employment, on expected demand and on expected activity are below their average.