Informations Rapides · 21 June 2024 · n° 150

In June 2024, the business climate in manufacturing industry is stable, just below its average Monthly business survey (goods-producing industries) - June 2024

According to the business managers surveyed in June 2024, the business climate in manufacturing industry is stable. At 99, the synthetic indicator remains just below its long-period average (100). The balance of opinion on the evolution of the production over the last three months has diminished again while the one on the personal production expectations over the next three months has increased anew.

In June 2024, the balance of opinion on the evolution of the production over the last three months has diminished again and has moved away from its average. It has reached its lowest level since January 2024. The balance of opinion relative to the general prospects of production in the industry has also diminished and has moved away from its average too. It has reached its lowest level since November 2023. On the contrary, the balance of opinion on the personal production expectations over the next three months has increased anew. Nevertheless, it remains below its average. The economic uncertainty felt by the business leaders has increased: the corresponding balance has gone back just above its average.

The balances of opinion associated with the level of the order books, both overall and foreign, are almost stable. The one relative to the overall order books is at its average level while the one relative to the foreign order books is setting above its own.

The balance of opinion associated with the current level of finished-goods inventories has slightly decreased and has moved away from its average.

Concerning the workforce size, the balances of opinion on their change, both past and future, have increased but remain well above their average.

The balance of opinion related to the expected trend in selling prices over the next three months is almost stable below its average.

The share of companies declaring being limited in their production by workforce shortage has diminished slightly but remains well above its average. The share of companies declaring sourcing difficulties as a factor limiting their production is stable, above its average. In total, the share of companies declaring supply-side obstacles only has slightly decreased: at 23%, it remains just above its long-term average. Finally, the share of companies declaring difficulties of demand only has increased for the fourth month in a row: at 30%, it remains nonetheless well below its long-period average.

In June 2024, the business climate indicator in the manufacture of food products and beverages is stable. It remains clearly below its long-period average. The balance of opinion on the evolution of the production over the last three months has diminished again while the balance relative to the level of the foreign order books has increased. Both remain below their average.

In the manufacture of machinery and equipment goods, the synthetic indicator of the business climate is stable too. It is just below its average. The balances of opinion relative to the evolution of the past production and to the personal production expectations have increased while the balance of opinion relative to the level of the overall order books has retreated. Concerning the sub-sectors, the climate has improved again in the manufacture of computer, electronic and optical products while it has slightly darkened in the manufacture of electrical equipment and in the sub-sector of machinery and equipment.

In the manufacture of transport equipment, the synthetic indicator of the business climate has rebounded slightly and has gone back to its April level, well above its average. It is stable in the sub-sector of “motor vehicles, trailers and semi-trailers” while it has slightly rebounded in the sub-sector of “other transport equipment”. In the sub-sector of “motor vehicles, trailers and semi-trailers”, the balances of opinion associated with the evolution of the past production and with the level of the foreign order books have decreased. The ones relative to the personal production expectations and to the level of the overall order books have increased. In the sub-sector of “other transport equipment”, the balances of opinion relative to the level of the order books, both overall and foreign, have rebounded.

Finally, the business climate indicator in “other manufacturing” has withdrawn. At 95, the synthetic indicator is below its long-period average. The balances of opinion relative to the levels of the order books and to the personal production expectations have retreated. Concerning the sub-sectors, the climate has darkened significantly in the manufacture of basic metals and fabricated metal products, where the indicator has clearly moved away from its average, and in the manufacture of “other industrial products”, where the indicator remains just above its own.

The business climate in manufacturing industry of May 2024 has not been revised (after rounding).