Paris, France – In a recent survey conducted in May 2023, business sentiment within the building construction industry has taken a severe hit, signaling a significant deterioration in the sector. The synthetic indicator, standing at 108, has plummeted by 3 points, reflecting a concerning downturn across multiple key areas including activity, order books, expected prices, and workforce.
The survey, conducted among business managers in the industry, highlights a worrisome trend that has shaken the building construction landscape. The balance of opinion regarding activity levels has witnessed a sharp decline, as managers express growing concerns about the current state of affairs.
Furthermore, the outlook on demand has also experienced a notable deterioration, raising concerns among industry professionals. The balance of opinion regarding order books, which indicates the duration of available work, has dropped to 8.4 months, signaling a slight decrease but still remaining above the long-term average.
While supply difficulties have shown some improvement, the persisting workforce shortage remains a significant challenge. Business managers have reported a stable share of 46% facing workforce shortages, an issue that continues to hinder their operations. Despite a slight decrease, the proportion of companies facing production bottlenecks due to both workforce shortage and supply difficulties remains well above the long-term averages.
The survey also revealed a significant drop in the balance of opinion concerning expected prices. Many business managers have indicated a shift away from planned price increases in the coming months. This decline, which began earlier this year, has intensified, although it still remains higher than the long-term average.
Moreover, the balances of opinion regarding workforce size have continued to decline. While the balance of opinion on past workforce size has almost returned to its average, the one regarding expected workforce size remains considerably higher.
The building construction industry in France is currently grappling with a challenging business climate, as managers express deep concerns about the sector’s future. These latest survey results underscore the need for proactive measures and support to revive the industry and restore its growth trajectory. Stakeholders and policymakers are urged to address the critical issues of workforce shortage and supply difficulties to ensure a sustainable and prosperous future for the building construction sector in France.