According to the business leaders surveyed (approximately 8,500 companies or establishments surveyed between 29 October and 5 November), economic activity continued to grow in October, driven by market services, certain industrial sectors, and a rebound in construction. Industrial production increased more than expected, underpinned by aeronautics, chemicals, and capital goods, while the agri-food and automotive sectors recorded a decline. Market services posted clear growth in business services, food services, and temporary work.
In November, activity is expected to continue to grow in industry and services, albeit at a more moderate pace. Order books in industry remain low overall and uncertainty is high, fueled by the political situation.
Cash positions are deemed to be broadly balanced, but are deteriorating in certain industrial sectors.
Supply difficulties in industry remained limited (7% of companies), except in the aeronautics and automotive sectors. Input price increases in certain sectors spread partially, leading to a slight rise in selling prices in industry. Prices remained on a downward trend in construction and posted a very moderate increase in services.
Recruitment difficulties remained stable (17% of companies), with a slight upturn in employment, driven by services and recourse to temporary workers.
Based on the survey results, supplemented by other indicators, we expect GDP to post a slight rise in the fourth quarter.
