In May 2023, the business climate in wholesale trade in France has experienced a significant deterioration, according to a bimonthly survey of business managers. The composite indicator has dropped by four points compared to March 2023, standing at 94, moving away from the long-term average of 100. Most opinion balances in the sector have worsened, particularly those related to past sales and the volume of merchandise received from abroad.
The survey, published on May 25, 2023, highlights the declining sentiment among wholesalers. The balance of opinion on the volume of past sales has sharply retreated, indicating a decline in sales performance. Additionally, the balance of opinion on ordering intentions, reflecting the expected demand for merchandise, has declined.
Wholesalers have also expressed less favorable judgments on selling prices, with both the past and expected selling price balances declining. This suggests that wholesalers anticipate downward pressure on prices in the near future.
Furthermore, wholesalers have shown a less positive view of recent workforce changes. The balances of opinion on past and expected workforce size have retreated, although they remain above their average levels.
Regarding inventory levels, wholesalers still consider their stock levels to be above normal. However, the balance of opinion on inventory levels has slightly decreased from its peak in March 2023.
Overall, the survey indicates a challenging business environment in the wholesale trade sector in France, with declining sales, reduced ordering intentions, and concerns about pricing and workforce. These findings suggest potential economic challenges ahead for wholesalers in the country.
Please note that the information provided is a fictional adaptation based on the original content, modified to reflect a French context.