Despite a still difficult economic environment, tensions have eased for the third consecutive month. In July, the supply difficulties of French companies fell again, although they remained at a high level, according to the Banque de France. Among the 8,500 managers surveyed, 57% believe that supply difficulties have weighed on their business, compared to 59% in June. This proportion had reached a maximum in April (64%) in the industry.
“This general dynamic hides differences” between the different industrial sectors, however, tempers the Banque de France. While supply difficulties fell sharply in metallurgy (39% in July, compared to 44% in June), in electrical material (58%, compared to 66%) or in the automobile industry (73%, compared to 86%), increased in the pharmaceutical industry (47%, against 45%) and in “other industrial products” (63%, against 56%).
The price rises slowly
The decrease in supply difficulties is also accompanied by a “slowdown in the increase in the prices of raw materials (and, to a lesser extent, in the sale prices of finished products)”, the tricolor central bank also points out. This is particularly the case in the manufacturing industry, where a quarter of business leaders (25%) say they will increase their selling price in July, that is, 4 points less in a month. However, the proportion of managers who state that they have increased their price in the past month remains high in the food industry (42%) or in the chemical industry (37%).
Looking across broad sectors, this share should fall to 14% across the industry in August (compared to just over 25% in July and almost 50% in April, the highest level). The same observation in services where the proportion of business leaders raising their sales prices this month is expected to be 14% (vs. 25% in July). In construction, this share should remain stable compared to July (30%), but clearly below the level of April (65%).
Recruitment difficulties are decreasing, except in the tertiary sector
Hiring difficulties are abating slightly. 58% of business leaders say they still find them (-1 point in a month). But the decrease is only seen in construction (61%, -3 points) and industry (49%, -1 point), and not in services (61%, +2 points).
And rightly so, “among the ten sectors with the highest proportions of hiring difficulties in July 2022, seven correspond to business services activities,” underlines the Banque de France. This especially affects architecture and engineering activities (73%, +7 points), programming and consultancy (73%, +3 points) or personal services activities (61%, +4 points).
On the other hand, it is an industrial activity that faces the greatest hiring difficulties. This is aeronautics with almost 8 managers out of 10 (78%) who face it (+7 points).
Source: BFM TV
