Informations Rapides · 25 April 2025 · n° 99

In April 2025, manufacturers consider the demand to have been more dynamic over the last three months Quarterly business survey (goods-producing industries) - April 2025

In April 2025, business managers in manufacturing industry have estimated that the demand, both global and foreign, has been more dynamic over the last three months. They also expect demand, both global and foreign, to be dynamic over the next three months. Finally, production bottlenecks remain strong while hiring difficulties have continued to decline.

Business managers’ opinion concerning the evolution of the demand, both global and foreign, over the past and the next three months, has improved in April 2025. The balances of opinion relating to the past evolution of the demand have sharply increased, particularly that regarding foreign demand. This latter balance has gone back markedly above its average and that relating to global demand has returned to its own. Regarding expected demand, both global and foreign, the associated balances of opinion have also improved, particularly the one relating to global demand. Both have returned above their respective average.

In April 2025, the share of manufacturing companies at the limit of their production capacity (production bottlenecks) is stable and remains well above its long-term average: 38% have reported that they would not be able to increase their production with their current resources if they received more orders. Moreover, fewer business managers than three months ago consider their production capacities sufficient given the likely evolution of orders over the coming months. The associated balance of opinion has decreased anew and has fallen to its lowest level in two years. The production capacity utilisation rate has slightly increased again: at 82% it has moved closer to its average level.

The balance of opinion on the expected change in investment over the next three months (data not seasonally adjusted yet) has rebounded but remains below its average.

In April 2025, hiring difficulties, which have been declining since October 2022, have decreased again but remain above their average. 40% of business managers have reported experiencing them, this share has reached its lowest level in the series in four years, although it remains above its long-term average.

Business managers estimate that their selling prices have decreased by 0.1% on average since January 2025. For the next three months, they anticipate an increase in their selling prices, which are expected to grow by 0.6% on average.

The balance of opinion on outlook for changes in hourly wages in industry is stable, well below its average. It remains at a level not seen since January 2016, excluding the COVID-19 pandemic.

The balance relating to the cash-flow situation of industrial companies has decreased and has returned to its average.

In the manufacturing industry, more business managers in April 2025 than in October 2024 have estimated an increase in their investments for 2024. This upward revision affects almost all the sub-sectors and more sharply in “other industries”; the balance of opinion has decreased in the manufacture of transport equipment, where it remains nevertheless the highest.

Regarding the expected change in investments for 2025, manufacturers have made a second assessment after that of October 2024. The associated balance of opinion has slightly increased for manufacturing industry in comparison to October 2024. It has also increased in all the sub-sectors, particularly in the manufacture of machinery and equipment goods. Moreover, the balance relating to the expected change in investments for 2025 is significantly lower than that on the estimated change in investments for 2024 in most of the sub-sectors, with the exception of the manufacture of machinery and equipment goods.