Business climate in French manufacturing industry degrades in Aug 2023

The balances of opinion on the order-books and on the past production have mainly contributed to this degradation.

The balance of opinion on the change in production over the last three months has deteriorated: it is at its lowest since August 2020.

On the contrary, the balance related to the change in production over the next three months has rebounded; however, it remains below its long-term average.

The general production prospects in the industry have been considered relatively stable since June, with a balance of opinion that remains slightly below its average.

The economic uncertainty felt by business leaders has diminished compared to July, an Insee release said.

The balances of opinion associated with the level of the order-books, overall and foreign, have distinctly shrunk and both of them have gone back below their long-term average.

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

The share of companies declaring sourcing difficulties as a factor limiting their production is stable, at 22 per cent.

The percentage of companies declaring being limited in their production by workforce shortage has increased for the third month in a row, going from 17 per cent in May to 26 per cent in August. These shares remain well above their respective averages.

ALCHEMPro News Desk (DS)