22 January 2020

2020- n° 14

In January 2020, the business climate remains stable at a high level in the building construction industry Monthly survey of building - January 2020

According to the business managers in the building construction industry surveyed in January 2020, the business climate remains stable. The composite indicator holds steady at 111, largely above its long-term average (100).

In January 2020, as many business managers as in the previous month have indicated an increase in their activity over the last three months. The corresponding balance is stable, well above its long-term average. For the next three months, the optimism of business managers has persisted regarding their own activity: the balance of opinion on expected activity, which has gone very slightly up, stands well above its average. However, the opinion of business managers on the general outlook for the sector is less favourable than last October: the corresponding balance of opinion has declined but remains largely above its long-term average.

In January 2020, more business managers than in December have reported that they had increased their staff size in the last three month. Thecorresponding balance of opinion, already above its average, has sharply picked up.

Likewise, the employment prospects are deemed a little bit more favourable than in December: the corresponding balance has edged up and stays largely above its long-term average.

In January 2020, less business managers than in the previous month consider that their order books are well filled. The corresponding balance of opinion has fallen back but remains far above its long-term average. Given their present staff size, business managers consider that their order books provide 8.0 months of work, as much as last month and significantly more than the long-term average (5.7 months).

The turning point indicator remains in the area indicating a favourable short-term economic situation.

In January 2020, the production capacity utilisation rate has slightly fallen as in December. At 91.4%, it stands above its average (88.6%). At the same time, 45% of business managers have reported production bottlenecks, as last month and far more than the long-term average. In particular, almost a quarter of business managers have declared production bottlenecks due to workforce shortage. More than three-quarters of the business managers face difficulties in recruiting staff. This indicator has tended to increase since the spring of 2019 and stands largely above its long-term average (58%).

In January 2020, more business managers than in October have reported an improvement of their cash-flow position. The corresponding balance, on the rise, stands above its long-term average. At the same time, as many business managers as in October have reported a lengthening of payment periods from their clients. The corresponding balance, virtually stable, stays below its long term average.

Otherwise, more business managers than in December have announced that they will increase their prices over the next three months. The corresponding balance has slightly increased again and stands well above its long-term average.