23 October 2019

2019- n° 274

In October 2019, the business climate is stable in services Monthly survey of services - October 2019

According to business managers surveyed in October 2019, the business climate in services is stable. At 106, it stands well above its long-term average (100).

The balances of opinion on past and expected activity have weakened but stand above their long-term average. The balances on expected demand and on the general outlook of activity on the sector, already clearly above their average, have continued to grow slightly. After two consecutive decreases in August and in September, the balances of opinion on prices have recovered and stand above their long-term average.

Concerning employment, the balance on past employment has decreased again and moved below its average whereas that on expected employment have increased and stand well above its. Otherwise, as in July, nearly four in ten business managers have reported difficulties in recruitment compared to three in ten on average on the long period.

The balance on past investment is stable whereas that on expected investment has increased. Both are above their average.

More business managers than in July have reported demand difficulties only. Nevertheless their proportion remains significantly above its average. The share of business managers facing supply difficulties only is stable and just below its average level.

In October 2019, the turning point indicator remains in the area indicating a favourable short-term economic situation.

The business climate indicator is superior or equal to its long-term average in all sub-sectors. It is stable and equal to its average in real estate activities and has remained very favourable in professional, scientific and technical activities. It has decreased in road freight transport and in administrative and support services whereas it has improved in accommodation and food services and information-communication.

In road freight transport, the businness climate has lost three points. At 103, it stands however above its average. The balances on expected activity and on expected demand have sharply fallen. However, almost all balances remain above their average except that on past employment.

In accommodation and food services, the climate has improved again and gained four points. At 111, it stands substantially above its average. All balances of opinion have increased except that on expected employment which has slipped back. Those on expected activity and on past employment have strongly increased. All balances are above their long-term average.

After a sharp fall the previous month, the business climate has recovered a little in information-communication. At 103, it has gained one point and hence remains above its average. Most of the balances have improved or are stable. However, the balances on past and expected activity have declined and stand below their average.

In real estate activities, the business climate stands at 100, its long-term average. The decline in balances on expected activity, on expected demand and on past employment is offset by the improvement in those on past activity and on expected employment.

At 111, the business climate in professional, scientific and technical activities is, as the previous month, far above its long-term average. The decrease in the balances on past and expected activity and on expected employment is offset by the increase in the balances on past employment and on expected demand.

In administrative and support services, the climate has lost one point. At 104, it stands above its average. The balances on past activity, on general outlook and on past employment have declined whereas those on expected activity and on expected employment have improved.