Construction industry : all indicators are green

According to the business survey in the building industry, the climate improves again, reaching a new level since August 2011. Details.
All the lights are green in the building industry according to the survey of the Insee, published on 22 June 2017. The institute explains that according to “the business leaders of the building surveyed in June 2017, the business climate improves again. After having increased three points in may, the indicator that synthesizes wins a point and is located in 104, a level unseen since August 2011 and above its long-term average (100). Almost all of the balances reach or exceed their long-term average.”


Another positive sign, the opinion of entrepreneurs on their business will also improve. In June 2017, they are more likely to report an increase in their activity in the past. The balance of opinion on expected activity is also progressing and is well above its average level of long-term.


Order books in favour of the increase in the number


The economic situation also seems to be favourable to the workforce. In June 2017, the heads of companies continue to increase their numbers. And the trend of improvement will continue : “the balance of opinion on expected workforce size has been increasing since march, 2017, “says the survey. The same trend for the order books to fill. In June 2017, the business leaders believe their books are well filled. The Insee points out that that the “balance is recovering steadily for two years and joined in June 2017 the long-term average, for the first time since October 2008“. The study analysis : “given their numbers, the entrepreneurs feel that the controls provide for 7.2 months of work, a level that is slightly higher than last month and significantly higher than its long-term average (5.5 months)“.


The economic situation is also favourable to the production capacity


The capacity utilization rate of production rises to new since march. “In June 2017, it increases again and reaches of 88.1 %. However, it remains a little below its long-term average (88,4 %). The biggest production concern for 31% of the companies, a share not seen since June 2009 and is just below its long-term average, “says Insee.


Finally, business leaders are more numerous to forecast an increase in their prices in the next 3 months. Again, the Insee notes that “the balance of opinion corresponding to slightly exceed its long-term average and find the level reached in the beginning of the year, the highest since July 2011”.

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