Informations Rapides · 25 July 2024 · n° 181

In July 2024, the business climate has deteriorated in wholesale trade Bimonthly survey of wholesaling - July 2024

According to the business managers surveyed in July 2024, the bimonthly business climate in wholesale trade has deteriorated. At 92, the composite indicator has lost three points compared to May 2024, and remains for the tenth two-month period in a row below its long-term average (100). This deterioration reflects in particular the decrease of the balances of opinion concerning the general business outlook and the past sales.

In July 2024, the balance of opinion of wholesalers regarding the general business outlook has fallen strongly and has reached its lowest level since November 2020. The one on the past sales has diminished again sharply and has moved away from its average. This decline can be clearly seen in the sub-sectors of the wholesale trade of food products and beverages, of information and communication equipment, of “other industrial capital goods” and in “other specialised wholesale trade”.

The balance on the received merchandise, whatever their origin, is almost stable, well below its long-term average.

Finally, the balance on the ordering intentions has diminished, as well as the one specific to the orderings from abroad; both balances have moved away from their long-term average.

In July 2024, the balance of opinion on the past selling prices of wholesalers has increased again sharply whereas the one on the expected prices has increased for the third two-month period in a row. Both of them have moved closer to their long-term average.

The balance of opinion on the expected change in the workforce size has diminished again, continuing a decline virtually uninterrupted since March 2022, while the balance on its recent change is stable. Both of them lie below their average.

After four two-month periods of decline in a row, the balance of opinion on the level of inventories has increased a little but remains below its average. It has increased in the majority of the sub-sectors of wholesale trade and particularly in the ones of household goods and of information and communication equipment, and has decreased in the sub-sector of food products and beverages, and of “other industrial capital goods”.

Finally, the balance related to the cash position has diminished again but remains above its long-term average.

The business climate in wholesale trade in May 2024 has been revised upwards by one point (after rounding). This revision is mainly due to the inclusion of late responses from companies and the update of the seasonal coefficients and the parameters of the composite indicators.