Apr 29, 2008

For the second quarter of 2008, manufacturers anticipate a slowdown


The demand overall as foreign, remained "relatively strong" in manufacturing in France in the first quarter but is expected to slow in April-June, according to the quarterly survey of economic conditions in the industry published by the 'INSEE.

"For the second quarter of 2008, manufacturers anticipate a slowdown in overall demand. Foreign demand could also be moderate, though less pronounced," writes the National Institute of Statistics in its April survey.

The indicator for aggregate demand expected in manufacturing (the difference between the percentages of "up" and "down") to +7 fall when he was revealed to +13 three months ago.

The indicator of overall demand for the whole industry is declining similarly to +8 against +13.

The foreign demand expected to fall moderately over 13 (+16 against the previous quarter) in manufacturing and +14 against +16 across the industry.

In manufacturing, the production has been less sought during the first quarter: the proportion of companies mentioning bottlenecks production fell by four points, as during the fourth quarter of 2007 (indicator 28 against 32 ).

Meanwhile, the rate of capacity utilisation fell slightly to 85.2% against 86.1%, while remaining above its long-term average.

According to entrepreneurs, lower staffing industry has slightly increased over the first quarter, and it could still grow over the next three months.

"The recruitment difficulties in manufacturing grew for executives," said INSEE.

The selling prices in manufacturing rose by 0.6% in the first quarter. Manufacturers expect an increase in the same order (+0.5%) over the period April-June.

The food industry are part of a much larger increase of 3.4% in the first quarter and a forecast of 1.8% in the second, said INSEE.

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