Bank of France reports industrial output continued to increase in all sectors
in February 1997 BANK OF FRANCE, MONTHLY BUSINESS SURVEY, 17/3/97.
In February, according to the business leaders surveyed by the Banque de France,
industrial output continued to increase in all sectors.
The rate rose slightly.
capacity utilization
grew at a moderate pace. There was strong demand from
Overall demand
foreign markets, particularly from northern Europe, including Germany and the United
Kingdom, and from the United States and Asia. The rise in the dollar and in sterling reinforced
the competitiveness of French products. Growth in demand on the domestic market was much
more moderate.
Order books are deemed to be satisfactory in all sectors, with the exception of
the food-processing industry, where they declined slightly and appear to be insufficient.
Inventories of finished products are still somewhat above normal levels. In particular, they are
considered to be above desired levels in the food-processing, intermediate goods and automobile
sectors.
In the coming months activity should continue to increase in all sectors, with the
exception of the automobile sector.
Commodity prices were stable overall. However, price rises were recorded in
certain parts of the intermediate goods industry, such as the rubber and plastics, metal-working,
and wood-processing sectors, and in the food processing industry owing to the appreciation of
the dollar. Intense competition prevented these increases from being passed on to sales prices,
which scarcely changed, except in the automobile sector, where they declined.
The business leaders surveyed continued to be cautious in their
investment plans.
There were few plans for large-scale investment, and they mainly concerned the renewal of
modernization of existing equipment.
contracted in February, after posting a substantial rise in January.
Retail sales
remained stable in industry, except in the automobile sector,
Employment levels
where they declined. The retail and market services sectors showed little change, but
employment fell in the building industry. Increasing use was made of flexi-time, annualized
working time and part-time working to respond to variations in demand.