22 January 2020

2020- n° 12

In Januray 2020, the production capacity utilisation rate has stabilized close to its average Quarterly business survey (goods-producing industries) - January 2020

In Januray 2020, the industrialists’ balance of opinion on past variation in overall demand has been stable, as the one on overall demand prospects. The balance on past variation stands above its long-term average, whereas the one on expected demand is below its average. Considering foreign demand, the balance of opinion has decreased and gotten closer to its average, whereas the one on expected demand has slightly recovered but stays below its average.

In January 2020, the production capacity utilisation rate is almost unchanged to 83,2 %. This stability follows two years of practically uninterrupted decrease between January 2018 and October 2019. The rate stays slightly above its long-term average (83,0 %).

This quarter, more industrialists have considered that they could not produce more if they received more orders: production bottlenecks have picked up in January and concern slightly more than a third of businesses (34%). One quarter of businesses have indicated difficulties of supply exclusively (25%). This share has slightly decreased this quarter and is above its average, as is the share of companies reporting difficulties of demand exclusively (24%), whose decrease is somewhat sharper.

In January 2020, industrialists are as many to indicate a decrease in their workforce size than an increase in the next three months. The situation considering their workforce size in the three past months is practically the same. Both balances of opinion stand clearly above their long-term average.

Slightly less than half of industrialists have reported experiencing hiring difficulties this quarter (47%). This share has decreased for the second quarter consecutively, after reaching a high point in July 2019 (51%).

According to industrialists, selling prices have been practically stable in Q4 2019 (+0,1%), after a stability in the previous quarter. For the next quarter, industrialists expect that selling prices will continue to be stable.

The share of industrialists who have experienced cash-flow problems has also stayed stable this quarter (11%), as it has been for one year. This share is lower than its long-term average (14%).

The industralists’ balances of opinion on their competitive position have risen on all markets. Regarding domestic market, the balance has increased for the second consecutive quarter and stands well above its long-term average. Considering foreign markets, the balances have increased too, after two consecutive quarters of decrease. For the EU market, the balance stays below its long-term average; it has gone above its long-term average for the foreign market outside the EU. Industrialists are slightly more optimistic than the previous quarter on general export prospects: the associated balance has increased slightly and stands just above its average.